Large commodity index funds, or managed money, increased their collective net long live cattle futures position in the week ended Tuesday for the twelfth straight week as hedgers raised their total net short position for the third straight week.
In revealing the data, the Commodity Futures Trading Commission’s weekly Commitments of Traders report showed a continued desire among investors to think cattle futures are going higher.
MANAGED MONEY GETS LONGER
Tuesday, managed money had a collective net long live cattle futures position of 128,762 contracts, up 4,884, or 3.94%, from 123,878 a week earlier. It was their largest net long position in more than two years.
Hedgers, commonly called commercial traders, Tuesday had a total net short live cattle position of 137,252 contracts, up 7,598, or 5.86%, from 129,654 a week earlier. It also was their largest net short position in more than two years.
The CFTC said managed money arrived at their new cattle position by adding 5,579 long positions and 695 short positions while unwinding 7,501 spread positions. This left them holding 41.2% of total long open interest, 3.3% of total short open interest and 10.7% of total spread open interest.
Commercials reached their new cattle position by liquidating 5,149 long positions and adding 2,449 short positions, leaving them in charge of 11.0% of total long open interest and 51.4% of total short open interest.
CFTC data also showed that total live cattle open interest Tuesday was 334,556 contracts, down 17,927, or 5.09%, from 352,483 a week earlier.
CME Group data showed the most-active Feb contract declined in value during the CFTC-reporting week to settle Tuesday at $189.02 per cwt, compared with $189.07 a week earlier.
MANAGED MONEY BUYS CORN
Tuesday, managed money had a collective net long Chicago corn position of 165,572 contracts, up 92,333, or 126.1%, from 73,239 a week earlier.
At the same time, commercials had a total net short corn position of 455,449 contracts, up 98,941, or 27.8%, from 356,508 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 65,759 long positions, covering 26,574 short positions and unwinding 1,761 spread positions. This left them with 20.7% of total long open interest, 10.3% of total short open interest and 11.9% of total spread open interest.
Commercials reached their new position by liquidating 25,716 long positions and adding 73,223 short positions, leaving them with 25.2% of total long open interest and 54.0% of total short open interest.
Most-active Mar settled at $4.49 a bushel, verses $4.32 ¼.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $191.08 per cwt to $193.82, compared with the previous week’s range of $189.83 to $193.00 per cwt. FOB dressed steers, and heifers went for $297.79 per cwt to $302.69, compared with $292.77 to $303.53.
The USDA choice cutout Friday was up $1.15 per cwt at $316.30 while select was up $3.38 at $283.86. The choice/select spread narrowed to $32.53 from $34.76 with 103 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $322.04 per cwt, and 50% beef was $87.42.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.26 to $1.43 a bushel over the Mar corn contract and in Kansas were unchanged at $0.15 over Mar, which settled at $4.49 1/4, down $0.01 3/4.
No delivery intentions were posted for the Dec live cattle contract Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $262.59 per cwt, down $0.48. This compares with Friday’s Jan contract settlement of $257.65, down $0.70.