During the week ended Tuesday, large commodity index funds, known as managed money, reversed a four-week trend and nudged their collective net long live cattle futures position higher.
In its weekly Commitments of Traders report Friday, the Commodity Futures Trading Commission also said that hedgers, called commercial traders, reduced their total live cattle net short position, extending their five-week pattern of trimming their net position.
FUNDS BUY A FEW CATTLE
Tuesday, managed money had a collective net long position of 42,663 contracts, up 1,007, or 2.42%, from 41,656 a week earlier.
At the same time, commercial traders had a total net short live cattle position of 79,593 contracts, down 2,342, or 2.86%, from 81,935 a week earlier. It was their smallest net short position since Jan. 23 when it was 74,636 contracts.
The CFTC said managed money arrived at their new live cattle position by adding 1,434 long positions, 427 short positions and 2,574 spread positions. This left them with 21.5% of total long open interest, 7.1% of total short open interest and 16.8% of total spread open interest.
Commercial traders got to their new position by adding 1,234 long positions and covering 1,108 short positions, leaving them in control of 14.5% of total long open interest and 41.4% of total short open interest.
The CFTC also said total live cattle open interest Tuesday was 296,405 contracts, up 6,702, or 2.31%, from 289,703 a week earlier.
CME data showed that the most-active Oct contract declined in value during the CFTC-reporting week to settle Tuesday at $179.27 per cwt, compared with $179.40 a week earlier.
FUNDS BUY LOTS OF CORN
Tuesday, managed money had a collective net short Chicago corn position of 187,994 contracts, down 60,671, or 24.4%, from 248,665 a week earlier. It was their smallest net short position since May 28 when it was 131,820 contracts.
Commercials Tuesday had a total net short position of 103,052 contracts, up 59,471, or 136.5%, from 43,581 a week earlier. It was their largest net short position since June 18 when it was 115,834 contracts.
The CFTC said managed money arrived at their new corn position by adding 18,319 long positions, covering 42,352 short positions and putting on 1,635 spread positions. This left them holding 14.3% of total long open interest, 28.2% of total short open interest and 15.5% of total spread open interest.
Commercials got to where they were by liquidating 43,412 long positions and adding 16,059 short positions, leaving them with 24.8% of total long open interest and 32.4% of total short open interest.
Most-active Dec settled at $4.05 ¼ a bushel, versus $3.92 ¾.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $181.21 per cwt to $188.70, compared with the previous week’s range of $183.00 to $196.22 per cwt. FOB dressed steers, and heifers went for $287.36 per cwt to $291.84, compared with $289.28 to $296.44.
The USDA choice cutout Friday was down $2.10 per cwt at $309.41 while select was off $0.66 at $296.12. The choice/select spread narrowed to $13.29 from $14.73 with 111 loads of fabricated product and 24 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $373.10 per cwt, and 50% beef was $136.98.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.29 to $1.39 a bushel over the Dec corn contract, which settled at $4.06 1/4 a bushel, down $0.04 1/2.
The CME Feeder Cattle Index for the seven days ended Thursday was $242.18 per cwt, up $0.91. This compares with Friday’s Sep contract settlement of $234.30, down $2.82.