Managed Money Buys More Live Cattle Futures

Managed money, a moniker for large commodity investment funds, bought more live cattle futures during the week ended Tuesday to extend their collective net long position as hedgers increased their total net short position.

The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.

 

FUNDS EXTEND LONG POSITION

 

As of Tuesday, managed money had a collective net long live cattle position of 99,692 contracts, up 4,925, or 5.20%, from 94,767 a week earlier.  It was their largest position since Aug. 1 when it was 100,581 contracts.

Hedgers, better known as commercial traders, had a total net short live cattle position Tuesday of 129,964 contracts, up 4,380, or 3.49%, from 125,584 a week earlier.  It was their largest position since Aug. 8 when it was 130,792 contracts.

The CFTC said managed money arrived at their new cattle position by adding 7,785 long positions, 2,860 short positions and unwinding 1,727 spread positions.  This left them with 35.0% of total long open interest, 4.4% of total short open interest and 13.6% of total spread open interest.

Commercial traders got to where they were Tuesday by adding 1,532 long positions and 5,912 short positions, leaving them in charge of 11.2% of total long open interest and 51.0% of total short open interest.

The CME Group said total live cattle open interest Tuesday was 322,524 contracts, up from 313,385 a week earlier by 9,139, or 2.92%.

CME data also showed that the most-active Dec contract rose in value during the CFTC-reporting week to settle at $188.45 per cwt, compared with $184.15 the previous Tuesday.

 

FUNDS SELL MORE CORN

 

Tuesday, managed money had a collective net short Chicago corn futures position of 138,163 contracts, up 41,975, or 43.6%, from 96,188 a week earlier.

At the same time, commercial traders had a total net short corn position of 66,054 contracts, down 35,608, or 35.0%, from 101,662 a week earlier.

The CFTC reported that managed money arrived at their new corn position by liquidating 15,374 long positions while adding 24,645 short position and 24,645 spread positions.  This left them holding 12.8% of total long open interest, 23.7% of total short open interest and 14.6% of total spread open interest.

Commercial traders got to where they were Tuesday by adding 22,994 long positions and covering 12,614 short positions, leaving them with 33.5% of total long open interest and 38.8% of total short open interest.

The CME said total corn open interest Tuesday was 1.260 million contracts, up 39,011, or 3.19%, from 1.222 million a week earlier.

The most-active Dec contract declined in value during the week to settle Tuesday at $4.76 ½ a bushel, compared with $4.86 a week earlier.

 

CATTLE, BEEF RECAP

 

The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $178.95 per cwt to $187.74, compared with the previous week’s range of $178.95 to $187.74 per cwt.  FOB dressed steers, and heifers went for $279.95 per cwt to $289.11, compared with $282.62 to $289.11.

The USDA choice cutout Friday was down $0.66 per cwt at $305.71 while select was off $3.74 at $283.12.  The choice/select spread widened to $22.59 from $19.51 with 126 loads of fabricated product and 30 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 $1.50 to $1.70 a bushel over the Dec corn contract, which settled at $4.76 1/4 a bushel, down $0.04 1/4.

The CME Feeder Cattle Index for the seven days ended Thursday was $253.39 per cwt, up $2.18.  This compares with Friday’s Sep contract settlement of $257.37 per cwt, up $2.20.