In the week ended Tuesday, managed money, or large commodity index firms, continued buying long live cattle futures positions for the eighth straight week, according to data from the Commodity Futures Trading Commission.
In its weekly Commitments of Traders report Friday, the CFTC also said commercial traders, or those with cash-market positions to protect, also took on a larger total net short position.
MANAGED MONEY GETS LONGER CATTLE
Tuesday, managed money had a collective net long live cattle futures position of 107,043 contracts, up 5,590, or 5.51%, from 101,453 a week earlier and the largest net long position since July 18, 2023, when it was 113,815 contracts.
At the same time, commercial traders had a total net short position of 125,821 contracts, up 3,756, or 3.08%, from 122,065 a week earlier and their largest net short position in two weeks.
The CFTC said managed money arrived at their new live cattle position by adding 4,784 long positions, covering 806 short positions and unwinding 9,349 spread positions. This left them with 34.9% of total long open interest, 3.9% of total short open interest and 13.2% of total spread open interest.
Commercials reached their new position by liquidating 1,097 long positions and adding 2,659 short positions, leaving them in control of 11.9% of total long open interest and 48.4% of total short open interest.
CFTC data showed total live cattle open interest Tuesday was 345,117 contracts, down 12,129, or 3.40%, from 357,246 a week earlier.
CME Group data showed the most-active Feb contract rose in value during the CFTC-reporting week to settle at $186.12 per cwt, versus $165.95.
MANAGED MONEY ALSO GETS LONGER CORN
Tuesday, managed money had a collective net long corn position of 99,779 contracts, up 96,744, or 3,187.6%, from 3,035 a week earlier and the largest since Feb. 21. 2023, when it was 217,290 contracts.
Meanwhile, commercials had a total net short position of 381,771 contracts, up 85,495, or 28.9%, from 296,276 a week earlier and their largest since Feb. 21, 2023, when it was 424,938.
The CFTC said managed money arrived at their new corn position by adding 21,528 long positions, covering 75,216 short positions and unwinding 14,315 spread positions. This left them in possession of 17.5% of total long open interest, 11.5% of total short open interest and 12.0% of total spread open interest.
Commercials reached their new position by adding 7,472 long positions and 90,967 short positions, leaving them holding 27.4% of total long open interest and 50.2% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $186.88 per cwt to $193.00, compared with the previous week’s range of $187.12 to $197.20 per cwt. FOB dressed steers, and heifers went for $293.96 per cwt to $299.32, compared with $297.87 to $302.65.
The USDA choice cutout Friday was down $0.46 per cwt at $303.34 while select was down $0.52 at $276.14. The choice/select spread widened to $27.20 from $27.14 with 91 loads of fabricated product and 23 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $328.13 per cwt, and 50% beef was $165.82.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.44 to $1.55 a bushel over the Dec corn contract and unchanged in Kansas at $0.25 over Dec, which settled at $4.24 a bushel, up $0.05.
The CME Feeder Cattle Index for the seven days ended Thursday was $252.31 per cwt, up $1.27. This compares with Friday’s Nov contract settlement of $251.10, up $3.47.