Large commodity investment firms, called managed money, shaved their near-record-large net long live cattle futures position in the week ended Thursday, said the Commodity Futures Trading Commission in its weekly Commitments of Traders report Friday.
Managed money’s new net long live cattle position was 131,370 contracts, down only 315, or 0.24%, from 131,685 the previous Tuesday. It was the first week of a decline in the net long position in 11 weeks.
At the same time, commercial traders, made up mostly of cash position hedgers, continued to extend their net short live cattle position, going out to 213,524 contracts from 210,144 the previous week, a gain of 3,380, or 1.61%. It was the 10th straight week of larger short positions by these traders.
The CFTC said managed money arrived at its new net long cattle position by liquidating 479 long positions, covering 164 short positions and placing 1,218 spread positions. This left them representing 36.7% of total long open interest, 2.6% of total short open interest and 9.2% of total spread open interest.
Commercials got to their new short position by liquidating 1,040 long positions and adding 2,340 short positions, leaving them in control of 6.2% of total long open interest and 61.5% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday stood at 386,583 contracts, up 3,913, or 1.02%, from 382,670 the previous week.
During the CFTC reporting week, the most-active Feb futures contract fell to $125.15 per cwt from $130.37, a 4.00% drop. It has since consolidated with support at $124.35.
FUNDS EXTEND SHORT CORN POSITION
Meanwhile, managed money extended their short corn futures position for the seventh straight week, moving to their shortest position in more than a year at 242,884 contracts, up 40,639, or 20.1%, from 202,245 the previous week.
Commercial traders cut their net short corn position to 97,112 contracts, down 47,305, or 32.8%, from 144,417 the previous week and resuming a trend toward fewer short positions that began in July. It was their smallest short position in more than a year.
The CFTC said managed money arrived at its new net short corn position by adding 1,757 long positions, 42,185 short positions and 8,303 spread positions. This left them representing 12.0% of total long open interest, 26.3% of total short open interest and 8.3% of total spread open interest.
Commercials got to where they were by adding 63,286 long positions and 15,981 short positions, leaving them in control of 29.3% of total long open interest and 35.0% of total short open interest.
The CME Group said total corn open interest rose 78,694 contracts, or 4.84%, to 1.705 million contracts from 1.626 million during the week.
CATTLE, BEEF RECAP
About 617 head of fed cattle sold on the Livestock Exchange video auction Wednesday at $119.21 and $119.25 per cwt, down about $4.75 from a week earlier.
Cash trade was reported in the Plains at mostly $119 per cwt on a live basis, down about $5 from last week. Dressed-basis trade was reported at $188 to $190 per cwt, down $1 to $4.
The USDA’s choice cutout Friday was down $3.00 per cwt at $207.24, while select was up $0.02 at $187.85. The choice/select spread narrowed to $19.39 from $22.41 with 127 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Wednesday was $158.44 per cwt, down $0.86. The USDA is having trouble with its reporting system, so a Thursday Index was not available. Friday’s Nov settlement was $157.77, unchanged.