Large commodity investment funds, known as managed money, nudged their collective net long live cattle futures position higher in the week ended Tuesday as hedgers did the same to their total net short position.
The Commodity Futures Trading Commission revealed the changes in its weekly Commitments of Traders report Friday.
FUNDS BUY CATTLE
As of Tuesday, managed money had a collective net long live cattle position of 60,255 contracts, up 1,710, or 2.57%, from 58,745 a week earlier.
Hedgers, known as commercial traders, since they own, or will own, the cattle represented by a futures contract and theoretically could make or take delivery, expanded their total net short position to 105,161 contracts, up from 104,739 a week earlier.
The CFTC said managed money arrived at their new cattle position by adding 3,811 long positions, 2,301 short positions and 1,241 spread positions to their total. This left them with 31.0% of total long open interest, 10.4% of total short open interest and 15.5% of total spread open interest.
Commercial traders, got to where they were Tuesday by liquidating 693 long positions and covering 271 short positions, leaving them with 12.4% of total long open interest and 48.3% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 292,287 contracts, down 1,693, or 0.58%, from 293,980 a week earlier.
CME data also showed that the most-active Feb futures contract declined in value to settle Tuesday at $153.62 per cwt from $154.80 a week earlier.
FUNDS SELL CORN
Managed money Tuesday had a collective net long Chicago corn position of 119,189 contracts on Tuesday, down 74,800, or 38.6%, from 193,989 a week earlier. It was their smallest net long position since Aug. 2 when it was 118,034 contracts.
Commercial traders, meanwhile, had a total net short position of 390,031 contracts, down from 466,714 a week earlier and their smallest net short position since Oct. 12, 2020, when it was 385,281 contracts.
The CFTC said managed money arrived at their new corn position by liquidating 48,449 long positions, adding 26,351 short positions and putting on 8,825 spread positions. This left them in control of 15.8% of total long open interest, 6.2% of total short open interest and 9.0% of total spread open interest.
Commercials got to where they were by adding 46,544 long positions and covering 39,139 short positions, leaving them with 27.3% of total long open interest and 58.9% of total short open interest.
The most-active Mar contract declined in value to settle Tuesday at $6.37 ¼ a bushel, versus $6.69 ½ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $155.00 to $159.00 per cwt, compared with the previous week’s range of $149.09 to $159.50. FOB dressed steers, and heifers went for $243.70 to $250.50 per cwt, versus $237.81 to $250.98.
The USDA choice cutout Friday day was up $1.65 per cwt at $248.93 while select was up $0.71 at $221.26. The choice/select spread widened to $27.67 from $26.73 with 71 loads of fabricated product and 26 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were steady at $1.90 to $2.10 a bushel over the Mar futures and for southwest Kansas were unchanged at $1.00 over Mar, which settled at $6.44, up $0.01 1/2.
No cattle contracts were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $179.22 per cwt down $0.01. This compares with Friday’s Jan contract settlement of $183.92, up $0.45.