With live cattle futures prices rising, large commodity index funds, known as managed money, began buying more contracts, extending their collective net long position, expanding it from a near-term low.
At the same time, cattle owners, known as commercial traders, expand their total net short position.
Those conclusions came from data in the weekly Commitments of Traders Report from the Commodity Futures Trading Commission on Friday with data as of Tuesday.
FUNDS BUY CATTLE
As of Tuesday, managed money had a collective net long live cattle position of 17,372 contracts, up 3,962, or 29.5%, from 13,410 a week earlier.
At the same time, commercial traders had a total net short position of 74,636 contracts, up 3,697, or 5.21%, from 70,939 a week earlier.
The Commitments of Traders report said managed money arrived at their new net long cattle position by adding 1,065 long positions, covering 2,897 short positions and unwinding 1,985 spread positions. This left them in control of 17.1% of total long open interest, 10.7% of total short open interest and 15.4% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 61 long positions and adding 3,636 short positions, leaving them holding 21.1% of total long open interest and 48.8% of total short open interest.
The CME Group said live cattle open interest Tuesday totaled 271,245 contracts, up 2,058, or 0.76%, from 269,187 a week earlier.
CME Group data also showed that the most-active Apr contract rose in value during the CFTC-reporting week to settle Tuesday at $177.82 per cwt, compared with $175.17 a week earlier.
FUNDS CONTINUE SELLING CORN
As of Tuesday, managed money had a collective net short Chicago corn position of 275,467 contracts, up 3,817, or 1.41%, from 271,650 a week earlier.
At the same time, commercial traders held a total net long position of 13,563 contracts, down 1,980, or 12.7%, from 15,543 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 5,445 long positions, 9,262 short positions and 14,841 spread positions. This left them in charge of 9.9% of total long open interest, 27.3% of total short open interest and 15.3% of total spread open interest.
Commercials got to where they were Tuesday by adding 20,910 long positions and 22,890 short positions, leaving them with 30.0% of total long open interest and 29.1% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.573 million contracts, up 87,000, or 5.85%, from 1.486 million a week earlier.
CME Group data also showed that the most-active Mar contract rose in value during the CFTC-reporting week to settle Tuesday at $4.46 ½ a bushel, compared with $4.43 ½ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $171.36 per cwt to $176.16, compared with the previous week’s range of $172.05 to $175.34 per cwt. FOB dressed steers, and heifers went for $270.35 per cwt to $275.77, compared with $270.93 to $277.08.
The USDA choice cutout Friday was up $1.85 per cwt at $300.53 while select was up $1.28 at $289.13. The choice/select spread widened to $11.40 from $10.83 with 62 loads of fabricated product and 13 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 $1.33 to $1.44 a bushel over the Mar corn contract, which settled at $4.46 1/4 a bushel, down $0.05 1/2.
The CME Feeder Cattle Index for the seven days ended Thursday was $232.06 per cwt, up $1.38. This compares with Friday’s Mar contract settlement of $239.70, up $1.52.