Large commodity investment firms, or managed money, continued to wean themselves from their collective net long live cattle position in the week ended Tuesday, the Commodity Futures Trading Commission said Friday.
In its weekly Commitments of Traders report, the CFTC said managed money’s new net long live cattle futures position as of Tuesday was 72,597 contracts, down 5,098, or 6.56%, from 77,695 the previous Tuesday and their lowest since Sep. 18 when it was 71,138 contracts. It was their third week of declines.
During the same week, commercial traders, those who own the cattle and theoretically could make or take delivery of a futures contract, shaved their collective net short position to 151,470 contracts from 151,546 the previous week, a decline of 76 contracts, or 0.05%.
The CFTC said managed money arrived at their new net long live cattle position by liquidating 3,135 long positions, adding 1,963 short positions and placing 3,121 new spread positions. This left them representing 28.5% of total long open interest, 6.6% of total short open interest and 13.9% of total spread open interest.
The CFTC said commercial traders got to where they were by adding 494 long positions and 418 short positions to leave them in control of 9.8% of total long open interest and 55.5% of total short open interest.
CME Group data showed that total live cattle open interest as of Tuesday was up 1,841 contracts, or 0.56%, from the previous Tuesday to 331,946 contracts from 330,105.
CME Group data also showed that the most-active Dec cattle futures contract declined to $117.15 per cwt from $117.77 the previous Tuesday. However, the contract basically was in a sideways pattern and remained that way as it generally increased in volatility.
FUNDS BUY MORE CORN
Meanwhile, managed money extended its new net long position in Chicago corn futures to a net long position of 27,903 contracts on Tuesday from 21,258 the week before, a gain of 6,645, or 31.3%. Managed money’s buying spree began the week ended Sep. 25 with a net short position of 124,855 contracts.
Commercials’ new net short position in the latest CFTC reporting week was 294,375 contracts, up 6,289, or 2.18%, from 288,086 the previous Tuesday. It was their largest net short position since June 26 when it was short by 327,077 contracts.
The CFTC said managed money arrived at its new net long corn position by adding 158 long positions, covering 6,487 short positions and placing 6,285 new spread positions. This left them representing 15.7% of total long open interest, 14.0% of total short open interest and 11.4% of total spread open interest.
Commercials got to where they were by adding 9,308 long positions and 15,597 short positions, leaving them in control of 27.6% of total long open interest and 45.4% of total short open interest.
CATTLE, BEEF RECAP
Cash cattle traded early last week at $111 to $112 per cwt on a live basis, up $0.50 to $1 from the previous week, and at $174 to $175.50 dressed, steady to up $0.50. Then on Friday, cattle traded at $114 to $115 live, up $3.50 to $4, and at $180 dressed, up $5 to $6.
The USDA choice cutout Friday was up $0.37 per cwt at $213.47, while select was up $0.52 at $198.83. The choice/select spread narrowed to $14.64 from $14.79 with 46 loads of fabricated product sold into the spot market.
There were no delivery tenders, retenders, demands or reclaims Friday.
The CME Feeder Cattle index for the seven days ended Thursday, was $154.01 per cwt, up $0.36. This compares with Friday’s Nov settlement of $154.80, up $0.85.