Large commodity funds made a modest addition to its net long live cattle position during the week ended Tuesday last week, bringing them to their largest net long position in four months.
The Commodity Futures Trading Commission’s weekly Commitments of Traders report Monday said managed money, a term for the large funds, had a net long live cattle position of 13,612 contracts, up 1,041, or 8.28%, from 12,571 the previous Tuesday. This was the largest net long position since the week ended Sep. 1 when it was 15,230 contracts.
Interestingly, commercial traders, those who theoretically could make or take delivery of a futures contract, cut their net short position to 24,527 contracts, their lowest net short position since the week ended Oct. 20 when it was 21,580. These hedgers usually trade opposite the large funds, but in the latest move, they cut their net short position by 6,462 contracts, or 20.9%, from 30,989 a week earlier.
Total open interest during the latest CFTC week rose 11,902 contracts, or 4.74%, to 262,823 from 250,921, according to CME Group data.
The CFTC said managed money arrived at its new net long position by liquidating 3,687 long positions and covering 4,728 short positions and adding 1,730 spread positions. This left them representing 18.8% of total long open interest and 13.6% of total short open interest.
Commercial traders, meanwhile, bought 10,792 new long positions while adding 4,330 new short positions. This left them in control of 27.0% of total long open interest and 36.3% of total short open interest.
During the latest CFTC reporting week, the most-active Feb futures contract continued its strong rally from a contract low of $116.97 per cwt, suffering only a minor setback Monday and Tuesday of last week. The contract rose a net $4.60 to close at $130.20 from $125.60 the previous week.
MANAGED MONEY BOOSTS NET SHORT CORN POSITION
Managed money added to its large net short corn position during the latest CFTC week, taking these traders to their largest net short position since the week ended June 16 when it was 151,267 contracts.
The CFTC reported Monday that managed money’s new net short position was 140,692 contracts, up 55,874, or 65.9%, from 84,818 the previous week.
At the same time, commercial traders cut their net short corn position by 50,462 contracts, or 18.6%, to 220,776 from 271,238, the CFTC said. This was their lowest net short position since the week ended Nov. 24 when it was 196,570.
The CME Group said managed money arrived at its new net short position by liquidating 2,134 long positions and adding 53,740 short positions while spreading an additional 1,223. This left them representing 11.6% of total long open interest and 22.3% of total short open interest.
Commercials got to where they were by adding 16,584 new long positions and covering 33,878 shorts. This left them in control of 24.0% of total long open interest and 40.7% of total short open interest.
Total corn open interest during the week rose to 1.318 million contracts from 1.285 million, a gain of 33,313, or 2.59%.
The CME reported that during the latest CFTC week, the most-active Mar corn contract fell $0.03 ¾ a bushel to $3.62 ½ or 1.02%, from $3.66 ¼.
CASH CATTLE TRADE QUIET
Cash cattle markets Monday were quiet as traders watched the futures market reaction to sharply lower stock values. Last week, cattle traded at $133 to $136 per cwt on a live basis. Most trades were $134 to $135, up $9 to $12 from the previous week. In dressed markets, cattle traded from $210 to $212, up $10 to $12.
The USDA reported sharply higher wholesale beef prices again on Monday, but the volume was only moderate. Choice was up $5.47 per cwt from Thursday to $218.06, and select was up $5.79 at $211.01. The choice/select spread narrowed to $7.05 from $7.37 on Thursday, and there were 94 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $163.77 per cwt, up $4.13. This compares with the Jan settlement Monday of $167.62, up $0.72.