Managed money boosted its live cattle long positions during the latest reporting week ended Nov. 11 while futures prices rose from a nearby swing low.
The Commodity Futures Trading Commission Friday reported that managed money, a proxy for large speculators, raised its net long position to 110,326 contracts from 104,391 the week before, a gain of 5,935 contracts, or 5.69%. This is the largest net long position for managed money since the week ended Tuesday, Oct. 7.
During the same week, producers increased their net short positions to 152,045 contracts, an increase of 7,885 contracts, or 5.47%, from 144,160 the previous week. This is the largest net short position for producers since the week ended Aug. 19 when it was 154,084 contracts.
Total live cattle open interest during the week rose to 323,090 contracts from 309,702 the previous week, meaning managed money holds 34.1% of the total open interest.
During the latest CFTC reporting week, Feb live cattle futures continued to rise from the latest swing low, which was attained during the previous week. Feb live cattle rose to $171.07 per cwt from a low of $166.47, a gain of $4.60, or 2.76%.
Since hitting that peak of $171.07, however, the contract has struggled to get much higher. A peak of $171.25 was reached Wednesday and Thursday of last week, and Friday, the market hit a top of $171.27. Cash markets traded Friday at $172 to $173 on a live basis, so the futures market may see enough light to break above the $171.35 barrier set Oct. 30.
Sources credited tight supplies of fed cattle and cold-weather damage to weights for last week’s push to record-high cash prices.
MANAGED MONEY TAKES NET LONG CORN POSITION TO SIX-MONTH HIGH
During the latest reporting week, managed money took its net long corn position to a six-month high. The latest reporting week saw them go to 185,544 net long positions from 185,260 the previous week, a gain of only 284 contracts, but the new position is the largest net long position since the week ended May 27 when it was 187,602 contracts.
During the latest reporting week, the Mar15 contract rose to its latest cycle high of $3.89 a bushel on Thursday and then declined.
Total open interest during the latest week rose to 1.335 million contracts from 1.327 million the previous week. This means managed money holds 13.9% of the total open interest.
Meanwhile, producers increased their net short positions to 355,944 contracts from 336,621 the week before, a rise of 19,323, or 5.74%. The new position is the largest net short position for producers since the week ended May 20 when it was 383,259 contracts.
The largest net short position for producers this year occurred during the week ended April 29 when it was 452,458 contracts.
CASH CATTLE GETS SUPPORT FROM BEEF
Cash cattle prices last week rose $1 to $2 per cwt to $172 to $173 on a live basis from $170 to $172 the previous week. On a dressed basis, cattle rose to $268 from $267.
Besides the continued tight supplies of slaughter-ready cattle, wholesale beef prices rose to their highest levels since August as packers filled in the last of their holiday-shortened slaughter schedules for this week.
The USDA’s beef cutout quote Friday was down from Thursday but up for the week. Choice boxed beef Friday was $255.22 per cwt, down $0.17, and select was $241.93, down $1.06. For the week, choice was up $3.06 and select was up $3.64.
However, sales into the spot market were slow with only 84 loads of fabricated product moved.