Large commodity funds boosted their net long live cattle position in the week ended Tuesday, Jan. 12, to its highest level since the week ended July 28, even though futures peaked and turned lower.
As of a week ago, managed money, or the funds, had a net long position of 23,059 contracts, up 3,270, or 16.5% from 19,789 a week earlier, according to the Commodity Futures Trading Commission’s Commitments of Traders report Friday.
At the same time, commercial traders, those who theoretically could make or take delivery of a futures contract, expanded their net short position to the largest it has been since the week ended Oct. 6 when it was 34,784 contracts. Their new position is 34,453 contracts, for a gain of 5,891, or 20.6%, from 28,562 a week earlier.
The CFTC said managed money arrived at its new position by adding 2,194 long positions and covering 1,076 short positions while adding 2,598 spread positions. This left them representing 18.8% of total long open interest and 10.5% of total short open interest.
Commercial traders made out their new short positions by adding 47 new long position and 5,938 new short positions. This left them in control of 25.5% of total long open interest and 38.0% of total short open interest.
Total live cattle open interest during the latest reporting week rose 10,076 contracts, or 3.80%, to 275,209 contracts from 265,173, the CME Group said.
During the latest CFTC reporting week, the most-active Apr futures contract fell to close at $131.60 per cwt from $136.77 the previous Tuesday. The contract last week went on to lose even more ground.
MANAGED MONEY, COMMERCIALS SWAP CORN POSITIONS
During the latest reporting week, managed money took on a shorter position than commercial traders for the first time since the week ended June 16. Managed money’s new net short corn position as of Tuesday was 195,338 contracts, up 26,588, or 15.8%%, from 168,750 a week earlier and was the largest net short position in more than a year.
Meanwhile, commercial traders’ new net short corn position was 162,307 contracts, down 31,489, or 16.2%, from 193,796 a week earlier. It was their smallest net short position since the week ended June 23 when it was 145,598 contracts.
The CFTC said managed money arrived at its new live cattle position by liquidating 2,947 long positions and adding 23,641 new short positions and 11,801 new spread positions. This left them in control of 10.9% of total long open interest and 24.9% of total short open interest.
Commercials arrived at their new net short position by adding 12,487 new long positions and covering 19,002 short positions to leave them representing 24.8% of total long open interest and 36.4% of total short open interest.
Total corn open interest during the week rose to 1.369 million contracts, up 13,802 contracts, or 1.02%, from 1.356 million a week earlier, according to the CME Group.
During the latest CFTC week, the most-active Mar corn contract made a cycle low on daily price charts. The contract closed Tue., Jan. 12, at $3.56 ¾ a bushel, compared with $3.53 a week earlier, a gain of $0.03 ¾. However, during the week, it hit a low of $3.48 ½ on Thursday, Jan. 7.
CASH CATTLE STEADY TO $1 HIGHER
Cash cattle trading last week ranged from $132 to mostly $133 to $134 per cwt on a live basis, up $1 from the previous week. On a dressed basis, cattle traded at $209 to $212, down $1 to $2.
The USDA reported lower wholesale beef prices Friday, with choice off $1.19 per cwt from Thursday at $231.28, and select down $2.19 at $224.94. The choice/select spread widened to $6.34 from $5.73, and there were 87 loads of fabricated product sold into the spot market.
For the week, choice beef was down $4.04, or 1.72%, while select was off $3.52, or 1.54%.
The CME Feeder Cattle Index for the seven days ended Thursday was $162.03 per cwt down $0.59. This compares with the Jan settlement Friday of $154.30, down $4.50.