Large commodity index funds, called managed money, increased their collective net long live cattle futures position in the week ended Tuesday as hedgers increased their collective net short position.
The information came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS TAKE LONGER CATTLE POSITION
Managed money’s new net long live cattle position Tuesday stood at 64,359 contracts, up 2,681, or 4.35%, from 61,678 a week earlier. It was their largest net long position since June 22 when it was 64,823 contracts.
Hedgers, those who own, or will own, the cattle, and known as commercial traders, had a collective net short position Tuesday of 147,434 contracts, up 4,619, or 3.23%, from 142,815 a week earlier.
The CFTC said managed money arrived at their new position by adding 462 long positions, covering 2,219 short positions and unwinding 2,034 spread positions. This left them in control of 28.6% of total long open interest, 6.1% of total short open interest and 8.7% of total spread open interest.
Commercial traders got to their new position by liquidating 2,388 long positions and adding 2,231 short positions, leaving them holding 8.5% of total long open interest and 60.1% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 285,836 contracts, down 8,829, or 3.00%, from 294,665 a week earlier.
CME data also showed that the most-active Oct futures contract declined in the week ended Tuesday to settle at $128.12 per cwt, compared with $128.15 a week earlier.
FUNDS GET LONGER CORN
As of Tuesday, managed money’s total net long corn position was 246,471 contracts, up 3,794, or 1.56%, from 242,677 a week earlier, and their largest since June 15 when it was 254,907 contracts.
At the same time, commercials’ net short corn position was 502,616 contracts, down from 514,177 a week earlier and their smallest since Oct 20 when it was 466,242.
The CFTC said managed money arrived at their new position by adding 6,722 long positions, 2,928 short positions and unwinding 25,089 spread positions. This left them with 19.6% of total long open interest, 2.3% of total short open interest and 8.9% of total spread open interest.
Commercials got to where they were by adding 5,395 long positions and covering 6,166 short positions, leaving them in charge of 27.4% of total long open interest and 62.7% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported a formula base price for live FOB fed steers Friday of $125.70 per cwt and for FOB fed heifers of $122.93. FOB dressed steers went for $191.23, while FOB dressed heifers sold at $192.29.
The USDA choice cutout Friday was up $6.90 per cwt at $324.83, while select was up $7.71 at $298.02. The choice/select spread narrowed to $26.81 from $27.62 with 66 loads of fabricated product and 24 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.90 to $2.00 a bushel over the Sep futures and for southwest Kansas were unchanged at $0.70 over Sep, which settled at $5.68 1/4 a bushel, up $0.01 1/4.
No live cattle contracts were tendered for delivery against the Aug futures contract Friday. Twenty-two heifer and three steer contracts were retendered at one, and one heifer and 21 steer contracts were retendered at two. Nineteen steer contracts were reclaimed at two.
The CME Feeder Cattle Index for the seven days ended Thursday was $155.83 per cwt down $0.42. This compares with Friday’s Aug contract settlement of $158.05 per cwt, down $0.65.