For the fifth straight week, managed money, or large commodity index funds, enlarged their collective net long live cattle position as cattle owners increased their total net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday, which reported trader class activity for the week ended Tuesday.
FUNDS KEEP BUYING CATTLE
As of Tuesday, managed money had a collective net long live cattle futures position of 54,203 contracts, up 7,565, or 16.2%, from 46,638 a week earlier. It was their largest net long position since Nov. 7 when it was 56,354 contracts.
Conversely, cattle owners, called commercial traders, Tuesday had a total net short cattle position of 107,978 contracts, up 7,794, or 7.78%, from 100,184 a week earlier. It was their largest net short position since Oct. 17 when it was 123,630 contracts.
The CFTC said managed money arrived at their new cattle position by adding 8,971 long positions and 1,406 short positions while unwinding 1,480 spread positions. This left them holding 25.6% of total long open interest, 7.0% of total short open interest and 13.3% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 1,346 long positions and adding 6,448 short positions, leaving them with 17.8% of total long open interest and 55.0% of total short open interest.
The CME Group said live cattle open interest Tuesday totaled 287,691 contracts, up 1,041, or 0.36%, from 286,650 a week earlier.
CME data also showed that the most-active Apr contract rose in value during the CFTC-reporting week to settle Tuesday at $187.32 per cwt, versus $185.10.
FUNDS KEEP SELLING CORN
Tuesday, managed money had a total net short Chicago corn futures position of 328,584 contracts, up 23,581, or 7.73%, from 305,003 a week earlier.
Commercials Tuesday had a collective net long corn position of 48,600 contracts, up 20,130, or 70.7%, from 28,470 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 7,260 long positions, adding 16,321 short positions and unwinding 6,700 spread positions. This left them with 10.6% of total long open interest, 31.1% of total short open interest and 16.2% of total spread open interest.
Commercials got to where they were Tuesday by adding 8,642 long positions and covering 11,488 short positions, leaving them holding 29.2% of total long open interest and 26.2% of total short open interest.
The CME Group said total corn open interest Tuesday totaled 1.605 million contracts, up 32,331, or 2.06%, from 1.573 million a week earlier.
The most-active May contract declined to settle at $4.32 ½ a bushel from $4.43 ¼.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $175.66 per cwt to $184.50, compared with the previous week’s range of $175.69 to $183.00 per cwt. FOB dressed steers, and heifers went for $282.97 per cwt to $288.11, compared with $280.06 to $290.07.
The USDA choice cutout Friday was up $0.82 per cwt at $300.61 while select was up $0.50 at $286.31. The choice/select spread widened to $14.30 from $13.98 with 81 loads of fabricated product and 64 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.35 to $1.45 a bushel over the Mar corn contract, which settled at $3.99 3/4 a bushel, down $0.06 1/4.
One heifer and no steer contract was tendered Friday for delivery against the Feb live cattle contract.
The CME Feeder Cattle Index for the seven days ended Thursday was $245.00 per cwt, up $0.51. This compares with Friday’s Mar contract settlement of $254.57, up $2.52 and Apr’s $259.97, up $3.27.