Managed money, a proxy for large commodity investment funds, augmented their collective net long live cattle futures position in the week ended Tuesday as hedgers increased their net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS BOOST LONG CATTLE POSITION
As of Tuesday, managed money’s net long cattle position stood at 42,388 contracts, up 2,362, or 5.90%, from 40,026 a week earlier. The move countered a two-week spate of reducing their collective net long position.
At the same time, the position of hedgers, those who theoretically can make or take delivery of a live cattle futures contract, known as commercial traders, advanced to its largest point since Oct. 13 when it stood at 125,489 contracts. The new position for these traders as of Tuesday totaled 121,133 contracts, up from 118,710 a week earlier.
The CFTC said managed money arrived at its new long cattle position by adding 4,221 long positions, 1,859 short positions and 2,921 spread positions in the week ended Tuesday. This left them in charge of 23.0% of total long open interest, 9.7% of total short open interest and 14.6% of total spread open interest.
At the same time, commercial traders added 705 new long positions along with 3,128 new short positions, leaving them holding 13.4% of total long open interest and 51.3% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday stood at 319,755 contracts, up 9,925, or 3.20%, from 309,830 a week earlier.
Data also showed that the most-active Apr live cattle futures contract rose in the latest CFTC reporting week to settle Tuesday at $119.35 per cwt, up from $117.65. The contract went on to post a high Friday of $122.52 per cwt.
FUNDS LESS LONG CORN
As of Tuesday, the collective net long position of managed money in Chicago corn futures totaled 336,087 contracts, down 24,097, or 6.69%, from 360,184 a week earlier. It was their first decline after four weeks of increase.
Commercials, as of Tuesday, had a net short position of 762,409 contracts, down 11,905, or 1.54%, from 774,314 a week earlier.
The CFTC said managed money arrived at its new corn position by liquidating 43,310 long positions, covering 19,213 short positions and putting on 6,011 spread positions. This left them responsible for 19.8% of total long open interest, 2.0% of total short open interest and 10.4% of total spread open interest.
Commercials got to where they were Tuesday by adding 41,530 long positions and 29,625 short positions, leaving them with 26.1% of total open interest and 66.6% of total short open interest.
CATTLE, BEEF RECAP
Fed cattle trading was reported in the Plains last week at $109 to $111 per cwt on a live basis, steady to up $1 from the previous week. Dressed-basis trading last week was seen at $172 to $174 per cwt, down $2 to $3.
The USDA choice cutout Friday was up $1.62 per cwt at $222.82, while select was up $3.06 at $213.34. The choice/select spread narrowed to $9.48 from $11.63 with 104 loads of fabricated product and 39 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.21 to $1.27 a bushel over the Mar CBOT futures contract, which settled at $5.00 1/2 a bushel, down $0.23 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $133.99 per cwt, up $0.80. This compares with Friday’s Jan contract settlement of $137.25 per cwt, up $1.37.