Large commodity index funds, known as managed money, increased their collective net long live cattle futures position during the week ended last Tuesday, Dec. 27, while cattle owners, or commercial traders, boosted their total net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS BOOST NET LONG POSITION
Last Tuesday, managed money had a collective net long live cattle position of 81,489 contracts, up 14,362, or 21.4%, from 67,127 a week earlier. It was their largest net long position since Aug. 24, 2021, when it was 87,407 contracts.
Cattle owners, lumped together as commercial traders, had a total net short position last Tuesday of 112,952 contracts, up from 104,148 a week earlier. It was their largest net short position since Oct. 25 when it was 113,179 contracts.
The CFTC said managed money arrived at their new cattle position by adding 9,791 long positions, covering 4,571 short positions and putting on 6,240 new spread positions. This left them in control of 33.5% of total long open interest, 7.9% of total short open interest and 16.6% of total spread open interest.
Commercial traders got to where they were last Tuesday by liquidating 2,020 long positions and adding 6,784 short positions, leaving them with 11.2% of total long open interest and 46.7% of total short open interest.
The CME Group said total live cattle open interest last Tuesday was 318,244 contracts, up 16,110, or 5.44%, from 302,134 a week earlier.
CME data also showed that the most-active Feb contract rose in value during the CFTC week to settle last Tuesday at $157.87 per cwt, compared with $155.57 a week earlier.
FUNDS BOOST LONG CORN POSITION
Last Tuesday, managed money had a collective net long corn position of 163,666 contracts, up 50,112, or 44.1%, from 113,554 a week earlier.
Commercials last Tuesday had a total net short position of 408,689 contracts, up 32,255, or 8.57%, from 376,434 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 37,536 long positions, covering 12,576 short positions and unwinding 5,487 spread positions. This left them holding 18.5% of total long open interest, 4.7% of total short open interest and 9.4% of total spread open interest.
Commercials got to where they were by liquidating 12,636 long positions and adding 19,619 short positions, leaving them with 24.8% of total long open interest and 59.2% of total short open interest.
The CME Group said total corn open interest last Tuesday was 1.19 million contracts, down from 1.19% a week earlier.
The most-active Mar contract rose to $6.74 ¾ a bushel from $6.52.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $155.46 to $158.70 per cwt, compared with the previous week’s range of $156.04 to $157.34. FOB dressed steers, and heifers went for $243.77 to $248.27 per cwt, versus $243.79 to $249.01.
The USDA choice cutout Friday was up $3.12 per cwt at $281.98 while select was up $0.23 at $250.93. The choice/select spread widened to $31.05 from $28.16 with 54 loads of fabricated product and 12 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were steady at $1.90 to $2.10 a bushel over the Mar futures and for southwest Kansas were unchanged at $1.00 over Mar, which settled at $6.78 1/2, down $0.01.
Six steer contracts were retendered for delivery Friday at one.
The CME Feeder Cattle Index for the seven days ended Thursday was $181.93 per cwt up $2.09. This compares with Friday’s Jan contract settlement of $183.70, down $0.10.