Managed Money Cuts Net Long Via More Open Shorts

Managed money boosted its net live cattle short positions during the week ended Tuesday by 6,521 contracts, while raising its long position by only 373, leaving them with a net long position of 56,603, the lowest in more than a year.

The Commodity Futures Trading Commission’s weekly Commitments Of Traders report through the week ended Tuesday, showed commercials covering short positions and managed money, or large investors liquidating long positions as each moved to the sidelines.

The moves left managed money holding 28.1% of open long positions and 5.5% of short positions.

Producers, merchants, processors and other users increased their net long position by 5,810 contracts, leaving them net short 96,001, their lowest in more than a year.

Managed money’s new position is down 6,148 contracts, or 9.80%, from 62,751 a week ago and drops them below that of swap dealers who had a net long position of 64,741 contracts.

Producers’ new net short position of 96,001 contracts was down 7,132, or 6.92%, from 103,133 the previous week, the CFTC figures said.  It left them holding 14.7% of open long positions and 53.1% of open short positions.

During the latest reporting week, live cattle open interest declined 3,203 contracts, or 1.28%, to 246,919 from 250,122 the previous week.

Also that week, the Apr live cattle futures contract, the most active, moved up on Wednesday and then began a sideways progression that lasted into Friday of last week when it moved up again.  On Tuesday, the contract ended at $153.75 per cwt, up $0.93 from the Jan. 27 settlement of $152.82 per cwt.




During the latest CFTC week, managed money worked hard to liquidate long positions in corn futures.  The Commitments Of Traders report said managed money dropped its net long position to 96,350 contracts, a 56,065, or 36.8%, drop from 152,415 contracts a week earlier.

That was the lowest position for managed money since the week ended Oct. 14 when it was 84,165 contracts.  The CFTC said this was accomplished by adding 46,569 short position to their portfolios while liquidating 9,496 long positions and leave them controlling 18.3% of open long positions and 11.2% of open short positions.

Corn producers, meanwhile, decreased their net short positions by 24,712 contracts, or 8.68%, to 259,988 from 284,700 the previous week, the CFTC said.  This leaves them with their smallest net short position since the week ended Sep. 30 when it was 242,860.  This leaves producers controlling 24.1% of total open long positions and 43.3% of total short positions.

During the CFTC reporting week, the most-active Mar corn contract moved lower into support and then reversed higher on Tuesday, ending the period at $3.85 ¾ a bushel, compared with a settlement of $3.81 ¼ the previous Tuesday.  The low for the period was at $3.65 ¾ and came on Friday.

Total corn open interest over the latest reporting week declined 46,593 contracts, or 3.44%, to 1.306 million from 1.353 million, according to CME Group data.




Cash cattle markets last week were steady to higher at $160 to $162 per cwt on a live basis, compared with $159 to $162 the previous week.  On a dressed basis, cattle sold at $256 to $260, up from mostly $252.

Beef markets were lower.  The USDA’s choice cutout Friday was $239.08 per cwt, down $2.10 for the day and down $3.36 from $242.44 the week before.  Select beef was $233.81, down $1.58 from Thursday and down $1.93 for the week.

The CME Feeder Cattle Index was last at $210.65, down $0.81 from $211.46.