Large commodity index funds, known as managed money, increased their collective net long live cattle futures position during the week ended Tuesday as hedgers extended their total net short positions.
The data came from Friday’s weekly Commitments of Traders report from the Commodity Futures Trading Commission.
MANAGED MONEY EXTENDS NET LONG CATTLE POSITION
As of Tuesday, managed money had a collective net long live cattle futures position of 67,347 contracts, up 3,299, or 5.15%, from 64,048 a week earlier. It was their largest net long position since Oct. 17 when it was 83,417 contracts.
Hedgers, called commercial traders, Tuesday had a total net short live cattle position of 116,056 contracts, up 2,966, or 2.62%, from 113,090 a week earlier. It was their largest net short position since Oct. 17 when it was 123,630 contracts.
The CFTC said managed money arrived at their new live cattle position by adding 1,812 long positions, covering 1,487 short positions and unwinding 441 spread positions. This left them with 28.1% of total long open interest, 6.7% of total short open interest and 13.7% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 3,159 long positions and covering 193 short positions, leaving them in charge of 15.9% of total long open interest and 52.9% of total short open interest.
The CFTC also said total live cattle open interest Tuesday was 313,505 contracts, down 3,931, or 1.24%, from 317,436 a week earlier.
CME Group data showed the most-active Jun live cattle contract was nearly steady for the CFTC-reporting week, settling Tuesday at $183.95 per cwt, versus $183.52 a week earlier.
FUNDS BUY CORN
Tuesday, managed money had a collective net short Chicago corn position of 252,319 contracts, down 33,261, or 11.6%, from 285,580 a week earlier.
Commercials had a total net short corn position of 35,410 contracts, down 39,416 from a net long position of 4,006 contracts, a week earlier.
The CFTC said managed money reached their new corn position by adding 2,593 long positions, covering 30,668 short positions and putting on 2,971 spread positions. This left them holding 11.8% of total long open interest, 28.3% of total short open interest and 17.8% of total spread open interest.
Commercials got to where they were by adding 4,230 long positions and 43,646 short positions, leaving them with 24.9% of total long open interest and 27.2% of total short open interest.
The CFTC said total corn open interest Tuesday was 1.532 million contracts, up 30,037, or 2.00%, from 1.502 million a week earlier.
The most-active May contract rose during the CFTC-reporting week, settling Tuesday at $4.41 ¾ a bushel, versus $4.26 ¼.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $185.00 per cwt to $191.26, compared with the previous week’s range of $183.58 to $186.24 per cwt. FOB dressed steers, and heifers went for $287.48 per cwt to $294.17, compared with $287.28 to $292.50.
The USDA choice cutout Friday was up $1.12 per cwt at $311.90 while select was up $0.71 at $302.40. The choice/select spread widened to $9.50 from $9.09 with 80 loads of fabricated product and eight loads of trimmings and grinds sold into the spot market.
The daily weighted average USDA listed wholesale price for fresh 90% lean beef was $330.79 per cwt, and 50% beef was $108.44.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.55 to $1.75 a bushel over the May corn contract, which settled at $4.36 3/4 a bushel, up $0.03.
The CME Feeder Cattle Index for the seven days ended Thursday was $249.00 per cwt, up $0.54. This compares with Friday’s Mar contract settlement of $249.27, up $1.80.