Large commodity index funds, known as managed money, cut their collective net long live cattle futures position in the week ended Tuesday, Jan. 5, for the second straight week, while hedgers expanded their combined net short position.
The data came from the Commodity Futures Trading Commission in its weekly Commitments of Traders report Friday.
FUNDS CUT CATTLE POSITION
As of last Tuesday, managed money had a collective net long live cattle futures position of 40,026 contracts, down 3,592, or 8.24%, from 43,618 a week earlier. It was their smallest net long position since Dec 15 when it was 39,812 contracts.
The net short position last Tuesday held by those hedgers, the folks who theoretically can make or take delivery of a futures contract, called commercial traders, 118,710 contracts, up 1,522, or 1.30%, from 117,188 a week earlier.
The CFTC said managed money arrived at their new net long cattle position by adding 1,002 long positions, 4,594 short positions and 4,851 spread positions. This left them with 22.4% of total long open interest, 9.4% of total short open interest and 14.1% of total spread open interest.
Commercial traders got to where they were last Tuesday by adding 2,025 long positions and 3,547 short positions, leaving them holding 13.6% of total long open interest and 51.9% of total short open interest.
The CME Group said total live cattle open interest as of last Tuesday was 309,830 contracts, up 14,709, or 4.98%, from 295,121 a week earlier.
CME Group data also showed the most-active Apr contract declined in value during the week ended last Tuesday to $117.65 per cwt from $119.10, a decline of $1.45, or 1.22%.
FUNDS TAKE LONGER CORN POSITION
As of last Tuesday, managed money had a net long Chicago corn position of 360,184 contracts, up 31,976, or 9.74%, from 328,208 a week earlier and their largest net long position in more than a year.
At the same time, commercial traders had a new net short position of 774,314 contracts, up 3,991, or 0.52%, from 770,323 a week earlier.
The CFTC said managed money arrived at their new long position by adding 20,816 long positions, covering 11,160 short positions and putting on 32,818 new spread positions. This left them with 22.1% of total long open interest, 3.0% of total short open interest and 10.1% of total spread open interest.
Commercial traders got to where they were by adding 48,344 long positions and 52,335 short positions, leaving them in charge of 24.1% of total long open interest and 65.1% of total short open interest.
The CME group said total corn open interest as of last Tuesday was 1.892 million, up from 1.779 million.
CATTLE, BEEF RECAP
Fed cattle trading was reported in the Plains last week at $108 to $111 per cwt on a live basis, down $1 to $2 from the previous week. Dressed-basis trading was seen at $172 to $174 per cwt, down $2 to $3.
The USDA choice cutout Friday was up $2.12 per cwt at $215.04, while select was up $2.76 at $205.84. The choice/select spread narrowed to $9.20 from $12.30 with 84 loads of fabricated product and 25 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.21 to $1.27 a bushel over the Mar CBOT futures contract, which settled at $5.31 1/2 a bushel, down $0.02 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $134.45 per cwt, down $0.66. This compares with Friday’s Jan contract settlement of $134.57 per cwt, up $1.97.