Large commodity investment funds, known as managed money, extended their collective net long live cattle futures position in the week ended Tuesday as hedgers lengthened their total net short position.
The Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday showed the changes, revealing that both classes of futures traders had new positions that were larger than they had possessed in months.
FUNDS BUY CATTLE
As of Tuesday, managed money had a new net long cattle position of 61,101 contracts, up 16,638, or 37.4%, from 44,463 a week earlier. It was their largest net long position since Feb. 22 when it was 80,955 contracts.
Hedgers, often referred to as commercial traders since they own cattle and theoretically could make or take delivery of a futures contract, had a total net short position Tuesday of 117,521 contracts, up 10,346, or 9.65%, from 107,175 a week earlier. It was their largest net short position since April 26 when it was 126,255 contracts.
The CFTC said managed money arrived at their new cattle position by adding 11,503 long positions, covering 5,135 short positions and putting on 2,923 spread positions. This left them holding 31.8% of total long open interest, 8.7% of total short open interest and 11.5% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 4,272 long positions and adding 6,074 short positions, leaving them in charge of 10.3% of total long open interest and 54.8% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 264,299 contracts, up 7,371, or 2.87%, from 256,928 a week earlier.
CME data also showed the most-active Oct cattle contract rose in value during the CFTC week, settling Tuesday at $145.67 per cwt, compared with $143.17.
FUNDS ALSO BUY CORN
In addition to cattle, managed money bought Chicago corn futures, and possessed a net long position of 142,646 contracts Tuesday, up 7,883, or 5.85%, from 134,763 a week earlier.
Commercials had a total net short position Tuesday of 142,646 contracts, up 7,883, or 5.85%, from 134,763 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 11,484 long positions, 3,601 short positions and unwinding 6,038 spread positions. This left them with 16.9% of total long open interest, 6.0% of total short open interest and 9.3% of total spread open interest.
Commercials got to their new position by liquidating 896 long positions and adding 4,124 short positions, leaving them in control of 27.5% of total long open interest and 58.6% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $143.18 to $149.00 per cwt, compared with the previous week’s range of $136.12 to $144.00. FOB dressed steers, and heifers went for $215.08 to $225.57 per cwt, versus $212.48 to $220.48.
The USDA choice cutout Friday was down $0.11 per cwt at $264.28 while select was up $0.47 at $237.94. The choice/select spread narrowed to $26.34 from $26.92 with 58 loads of fabricated product and 15 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 at $2.40 to $2.70 a bushel over the Sep futures and for southwest Kansas were unchanged at $0.10 over Sep, which settled at $6.26, up $0.06 1/4.
No contracts were tendered for delivery against the Aug live cattle contract Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $179.21 per cwt down $0.65. This compares with Friday’s Aug contract settlement of $181.50, down $0.02.