Large commodity index funds, known as managed money, extended their collective net long live cattle futures position in the week ended Tuesday for the eleventh straight week, according to data from the Commodity Futures Trading Commission Friday.
At the same time, hedgers, often referred to as commercial traders since they deal more in the cash market than in futures, extended their total net short position for the second straight week.
The CFTC published its data in the weekly Commitments of Traders report.
MNAGED MONEY KEEPS BUYING CATTLE
Tuesday, managed money had a collective net long live cattle position of 123,878 contracts, up 5,528, or 4.67%, from 118,350 a week earlier and their largest net long position in more than two years.
At the same time, commercial traders had a total net short position of 129,654 contracts, up 906, or 0.70%, from 128,748 a week earlier, their largest short position since Sep. 26, 2023, when it was 132,825 contracts.
The CFTC said managed money arrived at their new net long live cattle position by adding 4,728 long positions, covering 800 short positions and unwinding 2,314 spread positions. This left them holding 38.1% of total long open interest, 3.0% of total short open interest and 12.4% of total spread open interest.
Commercials reached their new net short position by liquidating 1,444 long positions and covering 538 short positions, leaving them with 12.1% of total long open interest and 48.9% of total short open interest.
The CFTC also said total live cattle open interest Tuesday was 352,483 contracts, down 2,998, or 0.84%, from 355,481 a week earlier.
CME Group data showed the most-active Feb contract rose in value during the CFTC-reporting week to settle at $189.07 per cwt, compared with $187.70 a week earlier.
FUNDS SELL CORN
Tuesday, managed money had a total net long corn position of 73,239 contracts, down 10,663, or 12.7%, from 83,902 a week earlier.
Meanwhile, commercials had a total net short corn position of 356,508 contracts, up 8,870, or 2.55%, from 347,638 a week earlier.
Managed money arrived at their new corn position by adding 4,728 long positions, covering 800 short positions and unwinding 2,314 spread positions. This left them with 38.1% of total long open interest, 3.0% of total short open interest and 12.4% of total spread open interest.
Commercials reached their new position by liquidating 1,444 long positions and covering 538 short positions, leaving them with 12.1% of total long open interest and 48.9% of total short open interest.
Most-active Mar settled at $4.32 ¼ a bushel, versus $4.28.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $190.00 per cwt to $191.54, compared with the previous week’s range of $186.86 to $189.51 per cwt. FOB dressed steers, and heifers went for $292.77 per cwt to $303.53, compared with $290.89 to $298.91.
The USDA choice cutout Friday was up $4.20 per cwt at $312.14 while select was off $0.37 at $276.73. The choice/select spread widened to $35.31 from $30.74 with 100 loads of fabricated product and 25 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $321.55 per cwt, and 50% beef was $80.40.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.35 to $1.54 a bushel over the Dec corn contract and in Kansas unchanged at $0.15 over Mar. Dec settled at $4.30 3/4, up 4 1/4, and Mar settled at $4.40, up $0.05.
The CME Feeder Cattle Index for the seven days ended Thursday was $261.83 per cwt, up $1.36. This compares with Friday’s Jan contract settlement of $255.82, up $0.90.