Large commodity index funds, known as managed money, expanded their collective net long live cattle futures position in the week ended last Tuesday, Sep. 24, as hedgers took on a larger total net short position.
The data came from the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday.
MANAGED MONEY BUYS CATTLE
Last Tuesday, managed money had a collective net long live cattle position of 57,010 contracts, up 13,233, or 30.2%, from 43,777 a week earlier. It was their largest net long cattle position since Aug. 6 when it was 58,348 contracts.
Hedgers, or commercial traders, last Tuesday had a total net short cattle position of 86,348 contracts, up 7,777, or 9.90%, from 78,571 a week earlier. It was their largest net short position since Aug. 8 when it was 91,902 contracts.
The CFTC said managed money arrived at their new cattle position by adding 13,430 long positions, 197 short positions and 527 spread positions. This left them with 24.8% of total long open interest, 6.6% of total short open interest and 16.5% of total spread open interest.
Commercials got to where they were by liquidating 991 long positions and adding 6,786 short positions, leaving them in possession of 12.4% of total long open interest and 39.8% of total short open interest.
The CFTC said total live cattle open interest last Tuesday was 314,766 contracts, up 17,258, or 5.80%, from 297,508 a week earlier.
The CME said the most-active Dec contract rose in the CFTC-reporting week to settle at $184.40 per cwt from $179.85.
FUNDS COVER CORN SHORTS
Last Tuesday, managed money had a collective net short corn position of 140,311 contracts, down 3,726, or 2.59%, from 144,037 a week earlier.
Commercials, last Tuesday had a total net short corn position of 132,679 contracts, up 5,741, or 4.52%, from 126,938 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 13,410 long positions, covering 17,136 short positions and putting on 10,092 spread positions. This left them in possession of 13.5% of total long open interest, 23.0% of total short open interest and 16.2% of total spread open interest.
Commercials got to where they were by adding 12,781 long positions and 18,522 short positions, leaving them holding 24.2% of total long open interest and 33.2% of total short open interest.
Total corn open interest was 1.467 million contracts, up from 1.422 million a week earlier.
CME data show that most-active Dec settled last Tuesday at $4.11 ¾ a bushel, down from $4.12 ½.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $186.32 per cwt to $186.49, compared with last week’s range of $182.95 to $185.78 per cwt. FOB dressed steers, and heifers went for $288.65 per cwt to $288.89, compared with $285.83 to $292.69.
The USDA choice cutout Monday was up $1.39 per cwt at $298.08 while select was up $2.45 at $284.53. The choice/select spread narrowed to $13.55 from $14.61 with 82 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $351.02 per cwt, and 50% beef was $74.76.
The USDA said basis bids for corn from feeders in the Southern Plains were down $0.05 at $1.28 to $1.40 a bushel over the Dec corn contract, which settled at $4.24 3/4 a bushel, up $0.06 3/4.
The CME Feeder Cattle Index for the seven days ended Friday was $247.24 per cwt, up $1.71. This compares with Monday’s Oct contract settlement of $246.20, down $0.87.