Large commodity index firms, known as managed money, increased their collective net long live cattle futures position during the week ended last Tuesday, Nov. 7, as hedgers grew their total net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Monday. The report usually is published each Friday containing position data as of the previous Tuesday, but this one was delayed by the observance of the Veterans Day holiday.
MANAGED MONEY BUYS A FEW MORE CATTLE
As of last Tuesday, managed money had a net long live cattle position of 56,354 contracts, up 325, or 0.58%, from 56,029 a week earlier. It was their first gain in six weeks.
At the same time, hedgers, or commercial traders, had a total net short cattle position of 101,401 contracts, up 2,865, or 2.91%, from 98,536 a week earlier. It was their first gain in six weeks.
The CFTC said managed money arrived at their new cattle position by adding 564 long positions, 239 short positions and 6,734 spread positions. This left them in control of 23.6% of total long open interest, 4.5% of total short open interest and 18.0% of total spread open interest.
Commercial traders got to where they were last Tuesday by liquidating 83 long positions and adding 2,782 short positions, leaving them with 14.7% of total long open interest and 49.1% of total short open interest.
The CME Group said total live cattle open interest last Tuesday was 297,468 contracts, down 1,061, or 0.36%, from 298,529 a week earlier.
CME data also showed that the most-active Feb live cattle contract declined in value during the CFTC-reporting week, settling last Tuesday at $178.42 per cwt, compared with $184.62 a week earlier.
MANAGED MONEY SELLS MORE CORN
Last Tuesday, managed money had a net short Chicago corn position of 176,065 contracts, up 28,924, or 19.7%, from 147,141 a week earlier. It was their largest net short position in more than two years.
At the same time, commercials had a total net short position of 53,810 contracts, down 14,455, or 21.2%, from 68,265 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 11,734 long positions and adding 17,198 short positions along with 5,563 new spread positions. This left them with 10.6% of total long open interest, 22.9% of total short open interest and 14.3% of total spread open interest.
Commercials got to where they were by adding 12,790 long positions and covering 1,665 short positions, leaving them holding 31.8% of total long open interest and 35.6% of total short open interest.
Total open interest was 1.427 million contracts, up from 1.405 million, and the most-active Dec contract settled at $4.68 ½ a bushel, versus $4.78 ¾ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $180.60 per cwt to $181.08, compared with last week’s range of $180.60 to $187.95 per cwt. FOB dressed steers, and heifers went for $287.04 per cwt to $290.57, compared with $290.71 to $293.89.
The USDA choice cutout Monday was down $2.61 per cwt at $297.85 while select was up $1.82 at $269.24. The choice/select spread narrowed to $28.61 from $33.04 with 70 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 unchanged to down $0.05 at $1.35 to $1.40 a bushel over the Dec corn contract, which settled at $4.77 1/4 a bushel, up $0.13 1/4.
The CME Feeder Cattle Index for the seven days ended Friday was $231.40 per cwt, down $4.02. This compares with Monday’s Nov contract settlement of $230.72, up $1.00.