Managed money, a proxy for large commodity investment funds, trimmed their collective net long position in live cattle futures in the week ended Tuesday, maintaining a near-flat position since the first week of September.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
Managed money’s new net long live cattle position as of Tuesday totaled 55,960 contracts, down 1,928, or 3.33%, from 57,888 a week earlier. This compares favorably with their position two weeks earlier when it was 56,757 contracts.
As of Tuesday, commercial traders’ collective net short live cattle position was 133,759 contracts, down 2,030, or 1.49%, from 135,789 a week earlier and their smallest net short position since Aug. 11 when it was 127,887 contracts. Commercial traders are those who actually own the cattle and come at the futures market primarily as hedgers.
The CFTC report said managed money arrived at their new long cattle position by liquidating 1,419 long positions, adding 509 short positions and putting on 4,877 new short positions. This left their collective position representing 26.1% of total long open interest, 7.0% of total short open interest and 14.6% of total spread open interest.
The CFTC report also said commercials got to where they were by liquidating 408 long positions and covering 2,438 short positions, leaving them in control of 7.1% of total long open interest and 52.5% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday was 294,393 contracts, up 1,174, or 0.40%, from 293,219 a week earlier.
CME Group said the live cattle contract’s most-active delivery month, Dec, moved lower during the week ended Tuesday to settle at $109.80 per cwt, compared with $111.57.
FUNDS KEEP BUYING CORN
Meanwhile, managed money continued to buy Chicago corn futures in the week ended Tuesday, extending their collective position to a point not seen in more than a year.
Managed money’s new long corn position came to 81,815 contracts, up 35,620, or 77.1%, from 46,195 a week earlier.
At the same time, commercials extended their collective net short corn position to 293,901 contracts, up 39,044, or 15.3%, from 254,857 a week earlier. It was their largest net short position in more than a year and their sixth straight increase.
The CFTC report said managed money arrived at their new net long corn position by adding 17,085 long positions, covering 18,535 short positions and putting on 1,046 new spread positions. This left them holding 14.4% of total long open interest, 8.9% of total short open interest and 12.5% of total spread open interest.
Commercials came to their new short corn position by adding 6,154 long positions and 45,198 short positions, leaving them in charge of 29.4% of total long open interest and 49.0% of total short open interest.
The CME Group listed total corn open interest at 1.502 million, versus 1.458 million.
CATTLE, BEEF RECAP
Fed cattle trading last week was reported at $104 to $105 per cwt on a live basis, up $1 from the previous week. Dressed-basis trading was seen at $164 per cwt, up $1 to $2.
The USDA choice cutout Friday was up $1.86 per cwt at $219.34, while select was off $0.76 at $206.98. The choice/select spread widened to $12.36 from $9.74 with 111 loads of fabricated product and 27 loads of trimmings and grinds sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $142.23 per cwt, down $0.36. This compares with Friday’s Oct contract settlement of $140.32 per cwt, down $1.95.