Large commodity index funds, known as managed money, continued to extend their collective net long live cattle futures position during the week ended Tuesday, according to the weekly Commitments of Traders report from the Commodity Futures Trading Commission.
The CFTC also said cash cattle traders, known as commercial traders, or just commercials, extended their total net short position in the same week.
MANAGED MONEY BUYS CATTLE
Tuesday, managed money had a collective net long live cattle position of 44,322 contracts, up 1,655, or 3.88%, from 42,667 a week earlier. It was their second straight week of rising net long positions.
Commercial traders, Tuesday, had a total net short live cattle position of 80,887 contracts, up 1,294, or 1.63%, from 79,593 a week earlier.
The CFTC said managed money arrived at their new live cattle position by adding 1,056 long positions, covering 603 short positions and unwinding 425 spread positions. This left them with 21.8% of total long open interest, 6.9% of total short open interest and 16.7% of total spread open interest.
Commercials got to where they were by liquidating 1,494 long positions and covering 200 short positions, leaving them holding 14.1% of total long open interest and 41.4% of total short open interest.
The CFTC said total live cattle open interest Tuesday was 296,061 contracts, down 344, or 0.12%, from 296,405 a week earlier.
CME Group data showed the most-active Dec contract declined in value during the CFTC-reporting week to settle at $176.42 per cwt, compared with $178.85 a week earlier.
FUNDS BUY MORE CORN
Tuesday, managed money had a collective net short position in Chicago corn of 148,595 contracts, down 39,399, or 21.0%, from 187,994 a week earlier. It was their third straight week of buying.
Commercials, Tuesday, had a total net short corn position of 134,006 contracts, up 30,954, or 30.0%, from 103,052 a week earlier. It was their third straight week of shorting more corn.
The CFTC said managed money arrived at their new corn position by adding 8,998 long positions, covering 32,401 short positions and unwinding 8,884 spread positions. This left them in control of 15.0% of total long open interest, 25.8% of total short open interest and 14.8% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 4,722 long positions and adding 26,232 short positions, leaving them in control of 24.5% of total long open interest and 34.3% of total short open interest.
Total open interest at the CME Group was 1.360 million contracts, up from 1.360 million a week earlier.
The most-active Dec contract settled at $4.04 ¼ a bushel, versus $4.09 ¼ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $179.95 per cwt to $184.00, compared with the previous week’s range of $181.21 to $188.70 per cwt. FOB dressed steers, and heifers went for $283.90 per cwt to $289.32, compared with $287.36 to $291.88.
The USDA choice cutout Friday was down $2.27 per cwt at $304.91 while select was down $1.47 at $294.17. The choice/select spread narrowed to $10.74 from $11.54 with 113 loads of fabricated product and 44 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $371.67 per cwt, and 50% beef was $125.70.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.31 to $1.41 a bushel over the Dec corn contract, which settled at $4.13 1/4 a bushel, up $0.07 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $243.32 per cwt, up $1.42. This compares with Friday’s Sep contract settlement of $241.90, down $0.15.