Large commodity index funds, known as managed money, ended a six-week selloff of long live cattle futures positions and turned to extending their collective net long position in the week ended Tuesday, Dec. 9, according to Commodity Futures Exchange data.
The CFTC still is catching up with delayed Commitments of Traders reports, set back by the government shutdown.
That same Tuesday, the CFTC’s Commitments of Traders report showed hedgers, or commercial traders, ended a similar period of ever-smaller net short positions.
FUNDS GET LONGER LIVE CATTLE
As of Tuesday, Dec. 9, managed money had a collective net long live cattle position of 86,434 contracts, up 4,598, or 5.62%, from 81,836 a week earlier.
Commercials, meanwhile, had a total net short position of 115,751 contracts, up 4,534, or 4.08%, from 111,217 a week earlier.
On that Tuesday, managed money held 105,713 long positions, or 33.2% of total open interest, for a gain of 4,399 contracts. They also held 19,279 short positions, or 6.1% of total open interest, for a decline of 199, and they held 35,757 spread positions, or 11.2% of total open interest, for a decline of 3,417.
Commercials, then, held 47,669 long cattle positions, or 15.0% of total open interest, for a decline of 3,507, and they held 163,420 short positions, or 51.3% of total open interest, for a gain of 1,027.
Total open interest at the CME Dec. 9 was 318,509 contracts, the CFTC reported, down 14,071, or 4.23%, from 332,580 a week earlier.
The Feb live cattle contract rose in value during the CFTC-reporting week to settle Dec. 9 at $226.95 per cwt, compared with $220.80 a week earlier.
FUNDS SELL CORN
On Dec 9, managed money had a collective net long corn position of 18,736 contracts, down 13,599, or 42.1%, from 32,335 a week earlier.
At the same time, commercials had a total net short position of 292,813 contracts, down 15,520, or 5.03%, from 308,333 a week earlier.
The CFTC reported on Dec. 9 managed money held 248,108 long positions, or 16.8% of total open interest, a decline of 2,115. They also held 229,372 short positions, or 15.6% of total open interest, for a gain of 11,484, and they held 200,461 spread positions, or 13.6% of total open interest for a gain of 5,445.
Commercials held 359,341 long positions, or 24.4% of total open interest, for a gain of 22,627, and they held 652,154 short positions, or 44.3% of total open interest, for a gain of 7,107.
Total open interest at the CME was 1.474 million contracts, down from 1.489 million a week earlier, and the Mar contract settled at $4.48 a bushel, compared with $4.50 a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $225.74 per cwt to $232.96, compared with the previous week’s range of $218.00 to $227.15 per cwt. FOB dressed steers and heifers went for $353.34 per cwt to $363.91, compared with $339.66 to $354.27.
The USDA choice cutout Friday was up $4.35 per cwt at $361.63 while select was up $2.05 at $346.02. The choice/select spread widened to $15.61 from $13.31with 72 loads of fabricated product and 26 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $397.64 per cwt, and 50% beef was $127.93.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $0.90 to $1.10 a bushel over the Mar corn contract, which settled at $4.43 3/4, down $0.00 3/4.
No live cattle contracts were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $351.18 per cwt, up $1.13. This compares with Friday’s Jan contract settlement of $345.60, up $5.32.