Large commodity index funds, or managed money, increased their collective net long live cattle futures position in the week ended last Tuesday, Jan. 28, while hedgers moved their total net short position higher.
The data came from the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
FUNDS BUY MORE CATTLE
Last Tuesday, managed money had a collective net short cattle position of 156,836 contracts, the largest in more than two years and up 7,080, or 4.73%, from 149,756 a week earlier.
At the same time, hedgers and cash traders, commonly lumped together as commercial traders, had a total net short position of 148,951 contracts, up from 146,034 a week earlier.
The CFTC said managed money arrived at their new cattle position by adding 7,996 long positions, 916 short positions and 699 spread positions. As a result, managed money’s long positions represented 44.0% of total open interest, their short positions were, 3.9% of total open interest and their spread positions represented 9.7% of the total.
Commercials reached their new live cattle position by adding 3,418 long positions and 6,335 short positions to their total, leaving their position representing 11.7% of total open interest and 49.8% of total short open interest.
The CFTC also said total live cattle open interest last Tuesday was 390,843 contracts, up 12,152, or 3.21%, from 378,691 a week earlier.
The most-active Apr live cattle contract rose in value during the CFTC-reporting week to settle at $207.27 per cwt, compared with $197.32 a week earlier.
FUNDS BUY MORE CORN
Last Tuesday, managed money had a collective net long Chicago corn position of 343,789 contracts, the largest in more than two years and up 22,105, or 6.87%, from 321,684 a week earlier.
Commercial traders had a total net short corn position of 685,788 contracts, the largest in more than two years and up 27,879, or 4.24%, from 657.909 a week earlier.
The CFTC said managed money had a long position of 438,643 contracts, representing 22.2% of total open interest, up 13,651 from a week earlier. They had a total short position of 94,854 contracts, 4.8% of total open interest and down 8,454 from a week earlier and a total spread position of 357,329 contracts, or 18.0% of total open interest, up 44,284 from a week earlier.
Commercials had a total long position of 388,998 contracts, representing 19.6% of total open interest and down 18,048 from a week earlier. They had a total short position of 1.075 million contracts, representing 54.3% of total open interest and up 9,831 from a week earlier.
Total corn open interest was 1.980 million contracts, up from 1.943 million a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $208.65 per cwt to $209.04, compared with last week’s range of $201.74 to $211.62 per cwt. FOB dressed steers, and heifers went for $322.86 per cwt to $326.63, compared with $316.06 to $327.24.
The USDA choice cutout Monday was up $4.31 per cwt at $331.99 while select was up $2.77 at $319.84. The choice/select spread widened to $12.15 from $10.61 with 68 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $364.41 per cwt, and 50% beef was $119.47.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.21 to $1.31 a bushel over the Mar corn contract, which settled at $4.88 3/4, up $0.06 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $281.68 per cwt, up $0.61. This compares with Monday’s Mar contract settlement of $270.50, down $5.22.