Large commodity index funds, called managed money, increased their collective net long live cattle futures position in the week ended Tuesday to its largest point in three months as hedgers took their net short position out as far.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS GET LONGER CATTLE
Managed money’s net long cattle position Tuesday came to 78,881 contracts, up 2,449, or 3.20%, from 76,432 a week earlier. It was their largest net long position since Aug. 31 when it was 80,207 contracts.
Hedgers, known as commercial traders, since they own, or will own, the cattle at some point, had a collective net short cattle position Tuesday of 147,918 contracts, up 1,794, or 1.23%, from 146,124 a week earlier. It was their largest net short position since Sep. 7 when it was 148,429 contracts.
The CFTC said managed money arrived at their new cattle position by adding 3,402 long positions, 953 short positions and 2,887 spread positions. This left them in control of 31.5% of total long open interest 6.0% of total short open interest and 11.3% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 1,115 long positions and adding 679 short positions, leaving them with 8.3% of total long open interest and 56.2% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 308,657 contracts, up 2,966, or 0.97%, from 305,691 a week earlier.
CME data also showed that the most-active Feb cattle contract declined during the week to settle Tuesday at $138.30 per cwt, compared with $139.22 a week earlier.
FUNDS GET LONGER CORN
In addition to taking on a larger net long cattle position in the week ended Tuesday, managed money acquired a larger net long position in Chicago corn futures. Managed money Tuesday had a net long corn position of 335,472 contracts, up 14,585, or 4.55%, from 320,887 a week earlier.
Commercial traders took on a larger net short position with 655,290 contracts net short, up 14,164, or 2.21%, from 641,126 the previous Tuesday.
The CFTC said managed money arrived at their new corn position by adding 13,695 long positions, covering 890 short positions and putting on 6,668 new spread positions. This left them with 24.8% of total long open interest, 1.8% of total short open int4erest and 8.4% of total spread open interest.
Commercials added 498 long positions and 14,662 short positions, leaving them with 24.6% of total long open interest and 69.5% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $140.22 to $142.17 per cwt, compared with the previous week’s range of $140.55 to $143.75. FOB dressed steers and heifers went for $219.83 to $221.74 per cwt, versus $219.10 to $222.88.
The USDA choice cutout Friday was up $0.04 per cwt at $263.01, while select was up $0.14 at $248.28. The choice/select spread narrowed to $14.73 from $14.83 with 84 loads of fabricated product and 23 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 $1.30 to $1.40 a bushel over the Mar futures and for southwest Kansas were unchanged at $0.40 over Mar, which settled at $5.93 1/4 a bushel, up $0.02.
No delivery intentions were posted against the Dec live cattle contract Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $161.04 per cwt down $0.04. This compares with Friday’s Jan contract settlement of $160.25 per cwt, down $2.32.