Large commodity index funds, known as managed money, went big in live cattle futures during the week ended Tuesday while hedgers extended their total net short position, according to the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday.
FUNDS GET MUCH LONGER CATTLE
The COT report lists the collective net positions of trader groups as of the preceding Tuesday, and Friday’s report showed managed money had a net long live cattle position of 63,552 contracts, up 27,526, or 76.4%, from 36,026 a week earlier. It was only their largest position since Sep. 20 when it was 70,509 contracts.
Hedgers, or commercial traders, extended their total net short position during the week ended Tuesday to 113,179 contracts, up 19,819, or 21.2%, from 93,360. It was their largest net short position since Sep. 20 when it was 122,111 contracts.
The CFTC said managed money arrived at their new net long cattle position by adding 21,826 long positions, covering 5,700 short positions and putting on 5,236 spread positions. This left them with 29.2% of total long open interest, 6.7% of total short open interest and 15.4% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 7,607 long positions and adding 12,212 short positions, leaving them in control of 10.4% of total long open interest and 50.5% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 282,242 contracts, up 15,771, or 5.92%, from 266,471 a week earlier.
CME data also showed that the most-active Dec futures contract rose during the CFTC-reporting week to settle Tuesday at $153.30 per cwt, compared with $149.77 a week earlier.
FUNDS EXPAND LONG CORN POSITION
Meanwhile, managed money expanded their collective net long position in Chicago corn futures, ending Tuesday at 248,886 contracts, up 9,528, or 3.98%, from 239,358 a week earlier.
Commercials, Tuesday, had a total net short corn position of 495,578 contracts, up 23,408, or 4.96%, from 472,170 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 12,437 long positions, 2,909 short positions and 10,067 spread positions. This left them holding 20.5% of total long open interest, 3.3% of total short open interest and 11.0% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 9,352 long positions and adding 14,056 short positions, leaving them in charge of 24.8% of total long open interest and 59.1% of total short open interest.
The CME said total corn open interest Tuesday was 1.446 million contracts, up 18,556, or 1.30%, from 1.427 million a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $145.28 to $153.00 per cwt, compared with the previous week’s range of $143.40 to $149.70. FOB dressed steers, and heifers went for $228.72 to $239.18 per cwt, versus $227.15 to $232.51.
The USDA choice cutout Friday was up $0.77 per cwt at $263.26 while select was up $2.58 at $234.49. The choice/select spread narrowed to $28.77 from $30.58 with 61 loads of fabricated product and 32 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $2.20 to $2.30 a bushel over the Dec futures and for southwest Kansas were steady at $1.00 over Dec, which settled at $6.80 3/4, down 1 1/2.
Six heifer contracts were retendered for delivery Friday at one.
The CME Feeder Cattle Index for the seven days ended Thursday was $175.85 per cwt up $1.07. This compares with Friday’s Nov contract settlement of $177.87, down $0.25.