Large commodity index funds, commonly known as managed money, increased their collective net long live cattle position during the week ended last Tuesday, Sep. 26, as hedgers cut their total net short positions.
The data came from the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
FUNDS BUY MORE CATTLE
As of last Tuesday, managed money had a collective net long live cattle futures position of 103,763 contracts, up 1,391, or 1.36%, from 102,372 a week earlier. It was their largest position since July 25 when it was 106,615 contracts.
Cattle owners, last Tuesday, had a total net short live cattle position of 132,825 contracts, down 4,939, or 3.59%, from 137,764 a week earlier.
The CFTC said managed money arrived at their new cattle position by adding 74 long positions, covering 1,317 short positions and putting on 1,902 spread positions. This left them holding 36.5% of total long open interest, 4.8% of total short open interest and 13.9% of total spread open interest.
Commercial traders reached their new cattle position by liquidating 329 long positions and covering 5,268 short positions, leaving them with 10.0% of total long open interest and 50.6% of total short open interest.
The CME Group said total live cattle open interest last Tuesday was 334,246 contracts, up 5,856, or 1.78%, from 328,390 a week earlier.
The most-active Dec contract declined in value during the CFTC-reporting week to settle last Tuesday at $188.47 per cwt, down $2.00, or 1.05%, from $190.47 a week earlier.
FUNDS SELL CORN
Last Tuesday, managed money had a collective net short Chicago corn futures position of 166,668 contracts, up 17,213, or 11.5%, from 149,455 a week earlier.
In addition, commercial traders last Tuesday had a total net short corn position of 33,343 contracts, down 14,532, or 30.4%, from 47,875 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 1,444 long positions, adding 15,769 short positions and putting on 1,089 spread positions. This left them with 12.6% of total long open interest, 25.0% of total short open interest and 13.8% of total spread open interest.
Commercials got to where they were by adding 28,578 long positions and 14,046 short positions, leaving them in charge of 34.7% of total long open interest and 37.2% of total short open interest.
The CME Group said total corn open interest last Tuesday was 1.338 million contracts, up 59,861, or 4.68%, from 1.278 million a week earlier.
The most-active Dec contract declined in value during the CFTC-reporting week to settle last Tuesday at $4.79 ¾ a bushel, down $0.03 ½, or 0.73%, from $4.76 ¼.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $184.55 per cwt to $185.55, compared with last week’s range of $182.50 to $187.80 per cwt. FOB dressed steers, and heifers went for $289.67 per cwt to $290.20, compared with $287.19 to $292.38.
The USDA choice cutout Monday was up $2.30 per cwt at $303.08 while select was up $0.94 at $276.98. The choice/select spread widened to $26.10 from $24.74 with 84 loads of fabricated product and 22 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were down $0.11 at $1.37 to $1.50 a bushel over the Dec corn contract, which settled at $4.88 3/4 a bushel, up $0.12.
The CME Feeder Cattle Index for the seven days ended Friday was $252.21 per cwt, down $0.09. This compares with Monday’s Oct contract settlement of $253.32, up $0.85.