Large commodity index funds, known as managed money, increased their collective net long live cattle futures position in the week ended Tuesday as hedgers increased their total net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
MANAGED MONEY BUYS CATTLE
As of Tuesday, managed money’s collective net long live cattle position was 102,372 contracts, up 2,680, or 2.69%, from 99,692 a week earlier. It was their largest position since July 25 when it was 106,615 contracts.
Hedgers, known as commercial traders, Tuesday had a total net short position of 137,764 contracts, up 7,800, or 6.00%, from 129,964 a week earlier. It was their largest position since July 18 when it was 138,587 contracts.
The CFTC said managed money arrived at their new cattle position by adding 5,301 long positions, 2,621 short positions and unwinding 866 spread positions. This left them in position of 35.9% of total long open interest, 5.1% of total short open interest and 13.1% of total spread open interest,
Commercial traders got to where they were Tuesday by liquidating 3,280 long positions and adding 4,512 short positions, leaving them with 10.0% of total long open interest and 51.5% of total short open interest.
The CME Group said total live cattle open interest was 328,390 contracts, up 5,866, or 1.82%, from 322,524 a week ago.
CME data also showed that the most-active Dec contract rose in value during the CFTC-reporting week, settling Tuesday at $190.47 per cwt, up from $188.45 a week earlier.
FUNDS SELL MORE CORN
Tuesday, managed money had a collective net short Chicago corn position of 149,455 contracts, up 11,292, or 8.17%, from 138,163 a week earlier. It was their largest position in more than two years.
Commercials Tuesday had a total net short corn position of 47,875 contracts, down 18,170, or 27.5%, from 66,054 a week earlier. It was their smallest short corn position in more than two years.
The CFTC said managed money arrived at their new corn position by adding 7,559 long positions, 18,851 short positions and unwinding 1,016 spread positions. This left them with 11.1% of total long open interest, 26.7% of total short positions and 14.2% of total spread open interest.
Commercials got to where they were by adding 11,301 long positions and covering 6,878 short positions, leaving them with 33.8% of total long open interest and 37.5% of total short open interest.
The CME said corn open interest Tuesday totaled 1.278 million contracts, up from 1.261 million a week earlier.
The most-active Dec contract declined in value, settling Tuesday at $4.76 ¼ a bushel, down from $4.76 ½.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $181.64 per cwt to $186.65, compared with the previous week’s range of $178.95 to $187.74 per cwt. FOB dressed steers, and heifers went for $283.68 per cwt to $291.26, compared with $279.95 to $289.61.
The USDA choice cutout Friday was up $1.40 per cwt at $303.33 while select was up $1.43 at $280.43. The choice/select spread narrowed to $22.90 from $22.93 with 75 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 at $1.60 to $1.75 a bushel over the Dec corn contract, which settled at $4.77 1/4 a bushel, up $0.02.
The CME Feeder Cattle Index for the seven days ended Thursday was $253.22 per cwt, down $0.87. This compares with Friday’s Sep contract settlement of $254.10 per cwt, down $0.82 and Oct’s $259.15, up $1.37.