Large commodity investment index firms, known as managed money, continued buying live cattle futures in the week ended Tuesday as hedgers continued to sell short.
The information was gleaned from the weekly Commitments of Trader report Friday from the Commodity Futures Trading Commission.
FUNDS BUY CCATTLE
Tuesday, managed money had a collective net long live cattle position of 67,888 contracts, up 10,878, or 19.1%, from 57,010 a week earlier. It was their largest net long position since July 30 when it was 79,393 contracts.
At the same time, hedgers, known as commercial traders, had a total net short live cattle position of 100,523 contracts, up 14,175, or 16.4%, from 86,348 a week earlier. It was their largest position since April 2 when it was 102,200 contracts.
The CFTC said managed money arrived at their new position by adding 8,419 long positions, covering 2,419 short positions and unwinding 922 spread positions. This left them with 26.5% of total long open interest, 5.7% of total short open interest and 15.6% of total spread open interest.
Commercial traders reached their new position by adding 5,531 long positions and 19,706 short positions, leaving them with 13.7% of total long open interest and 44.5% of total short open interest.
The CFTC also said total live cattle open interest Tuesday at the CME was 325,515 contracts, up 10,749, or 3.41%, from 314,766 a week earlier.
The CME Group said the most-active Dec contract rose during the CFTC-reporting week to settle at $185.17 per cwt, versus $184.40 a week earlier.
FUNDS ALSO BUY CORN
Tuesday, managed money had a collective net short corn position of 72,085 contracts, down 68,226, or 48.6%, from 140,311 a week earlier.
Meanwhile, commercials had a total net short corn position of 190,794 contracts, up 58,115, or 43.8%, from 132,679 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 11,688 long positions, covering 56,538 short positions and putting on 12,266 new spread positions. This left them with 14.1% of total long open interest, 18.9% of total short open interest and 16.8% of total spread positions.
Commercials reached their new position by adding 10,337 long positions and 68,452 short positions, leaving them in control of 24.6% of total long open interest and 37.5% of total short open interest.
The CFTC also said total open interest Tuesday was 1.484 million contracts, up 17,004, or 1.16%, from 1.467 million a week earlier.
The most-active Dec contract value rose during the CFTC-reporting week to settle at $4.29 a bushel from $4.11 ¾ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $184.30 per cwt to $188.29, compared with the previous week’s range of $182.95 to $185.78 per cwt. FOB dressed steers, and heifers went for $288.63 per cwt to $297.87, compared with $285.83 to $292.69.
The USDA choice cutout Friday was up $2.78 per cwt at $302.58 while select was up $4.32 at $287.61. The choice/select spread narrowed to $14.97 from $16.51 with 84 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $353.85 per cwt, and 50% beef was $73.00.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.28 to $1.40 a bushel over the Dec corn contract, which settled at $4.24 3/4 a bushel, down $0.03 1/2.
The CME Feeder Cattle Index for the seven days ended Thursday was $246.78 per cwt, down $1.47. This compares with Friday’s Oct contract settlement of $249.62, up $0.65.