Large commodity index funds, commonly referred to as managed money, increased their collective net long live cattle futures position during the week ended Tuesday, while cattle owners cut their total net short position.
The data came from Friday’s weekly Commitments of Traders report from the Commodity Futures Trading Commission, which lists the positions of trading groups as of the previous Tuesday.
MANAGED MONEY BUYS CATTLE
As of Tuesday, managed money had a collective net long live cattle position of 97,771 contracts, up 2,143, or 2.24%, from 95,628 a week earlier.
At the same time, cattle owners, commonly referred to as commercial traders, had a total net short position of 129,012 contracts, down 1,780, or 1.36%, from 130,792 a week earlier.
The CFTC report said managed money arrived at their cattle position by adding 550 long positions, covering 1,593 short positions and putting on 2,045 spread positions. This left them in control of 35.1% of total long open interest, 3.3% of total short open interest and 14.5% of total spread open interest.
The report said commercial traders got to where they were Tuesday by liquidating 2,019 long positions and covering 3,799 short positions, leaving them with 11.2% of total long open interest and 53.1% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 309,295 contracts, down 3,281, or 1.05%, from 312,576 a week earlier.
CME data also showed that the most-active Oct cattle contract declined in value during the CFTC-reporting week to settle Tuesday at $179.97 per cwt, compared with $180.90 a week earlier.
FUNDS ADVANCE NET SHORT CORN POSITION
As of Tuesday, managed money had a total net short Chicago corn position of 86,624 contracts, up 53,571, or 162.1%, from 33,053 a week earlier.
Commercials, meanwhile, had a total net short position Tuesday of 120,456 contracts, down 40,847, or 25.3%, from 161,303 a week earlier.
The CFTC said managed money got to their new corn position by liquidating 11,666 long positions, adding 41,905 short positions and putting on 3,915 new spread positions. This left them holding 13.1% of total long open interest, 19.8% of total short open interest and 12.2% of total spread open interest.
Commercial traders got to where they were Tuesday by adding 15,719 long positions and covering 25,128 short positions, leaving them in charge of 32.2% of total long open interest and 41.6% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.272 million contracts, down 19,921, or 1.54%, from 1.292 million a week earlier.
The most-active Dec contract declined to $4.75 ½ a bushel from $4.98 ¾ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $180.00 per cwt to $191.12, compared with the previous week’s range of $179.34 to $190.97 per cwt. FOB dressed steers, and heifers went for $283.74 per cwt to $293.54, compared with $282.49 to $295.81
The USDA choice cutout Friday was up $1.97 per cwt at $316.11 while select was up $2.10 at $288.36. The choice/select spread narrowed to $27.75 from $27.88 with 79 loads of fabricated product and 14 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 $1.90 to $2.10 a bushel over the Sep corn contract, which settled at $4.79 1/2 a bushel, up $0.06 1/2.
No contracts were tendered for delivery against the Aug cattle contract Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $244.04 per cwt, down $0.22. This compares with Friday’s Aug contract settlement of $245.57 per cwt, up $1.30.