Large commodity index funds, better known as managed money, enlarged their collective net long live cattle futures position for the sixth straight time in the week ended Tuesday.
At the same time, cattle owners, or commercial traders, extended their total net short cattle position for the sixth straight week.
The information came from the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
FUNDS BUY MORE CATTLE
As of Tuesday, managed money had a net long live cattle position of 58,972 contracts, up 4,769, or 8.80%, from 54,203 a week earlier. It was their largest net long position since Oct. 24 when it was 62,703 contracts.
Commercial traders Tuesday had a total net short position of 110,907 contracts, up 2,929, or 2.71%, from 107,978 a week earlier. It was their largest net short position since Oct. 17, when it was 123,630 contracts.
The CFTC said managed money arrived at their new net long position by adding 6,571 long positions, 1,802 short positions and 3,057 spread positions. This left them in control of 26.6% of total long open interest, 7.2% of total short open interest and 13.6% of total spread open interest.
Commercials reached their new net short position by liquidating 745 long positions and adding 2,184 short positions, leaving them holding 16.7% of total long open interest and 53.1% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 302,483 contracts, up 14,792, or 5.14%, from 287,691 a week earlier.
CME data also showed that the most-active Apr contract rose slightly in value during the CFTC-reporting week to settle at $187.72 per cwt, compared with $187.32.
MANAGED MONEY BUYS CORN
Reversing a seven-week trend of selling Chicago corn futures in the week ended Tuesday, managed money turned to buying contracts. Tuesday, they had a collective net short corn position of 287,795 contracts, down from 328,584 a week earlier.
Commercials Tuesday had a total net long corn position of 16,682 contracts, down 31,918, or 65.7%, from 48,600 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 12,880 long positions, covering 28,700 short positions and unwinding 11,870 spread positions. This left them with 12.1% of total long open interest, 31.2% of total short open interest and 16.4% of total spread open interest.
Commercials reached their new position n by liquidating 59,967 long positions and covering 28,849 short positions, leaving them holding 27.1% of total long open interest and 26.8% 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 $182.64 per cwt to $185.54, compared with the previous week’s range of $175.66 to $184.50 per cwt. FOB dressed steers, and heifers went for $283.61 per cwt to $290.64, compared with $282.97 to $288.11.
The USDA choice cutout Friday was up $1.08 per cwt at $305.28 while select was up $1.56 at $295.74. The choice/select spread narrowed to $9.54 from $10.02 with 77 loads of fabricated product and 26 loads of trimmings and grinds sold into the spot market.
The daily weighted average USDA listed wholesale price for fresh 90% lean beef was $308.95 per cwt, and 50% beef was $102.40.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.35 to $1.45 a bushel over the Mar corn contract, which settled at $4.12 1/4 a bushel, down $0.03 1/2.
The CME Feeder Cattle Index for the seven days ended Thursday was $247.00 per cwt, up $0.74. This compares with Friday’s Mar contract settlement of $252.97, up $3.97.