Large commodity index funds, known as managed money, took on more live cattle futures positions during the week ended Tuesday while hedgers decreased their total short position, according to data from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS GO LONG CATTLE
As of Tuesday, managed money had a collective net long live cattle futures position of 64,004 contracts, up 452, or 0.71%, from 63,552 a week earlier. It was their largest position since Sep. 20 when it was 70,509 contracts.
At the same time, commercial traders, those who own cattle and theoretically could make or take delivery of a futures contract, had a total net short live cattle position of 112,302 contracts, down 877, or 0.77%, from 113,179 a week earlier.
The CFTC said managed money arrived at their new cattle position by adding 6,792 long positions, 6,341 short positions and 1,410 spread positions. This leaves them holding 10.4% of total long open interest, 8.6% of total short open interest and 15.3% of total spread open interest.
Commercial traders got to where they were Tuesday by adding 721 long positions and covering 156 short positions, leaving them in control of 10.2% of total long open interest and 48.5% of total short open interest.
The CME group said total live cattle open interest Tuesday was 293,363 contracts, up 11,121, or 3.94%, from 282,242 a week earlier.
CME data also showed that the most-active Dec live cattle contract declined in value during the CFTC reporting week, settling at $151.95 per cwt, compared with $153.30 a week earlier.
FUNDS GET LONGER CORN
Tuesday, managed money had a net long Chicago corn position of 261,512 contracts, up 12,626, or 5.07%, from 248,886 a week earlier. It was their largest position since May 24 when it was 267,491 contracts.
At the same time, commercials had a total net short position of 511,261 contracts, up 15,683, or 3.16%, from 495,578 a week earlier. It was their largest position since June 28 when it was 537,593 contracts.
The CFTC said managed money arrived at their new corn position by adding 11,507 long positions, covering 1,119 short positions and putting on 6,020 new spread positions. This left them in charge of 20.9% of total long open interest, 3.1% of total short open interest and 11.2% of total spread open interest.
Commercials got to where they were by adding 2,992 long positions and 18,675 short positions, leaving them holding 24.6% of total long open interest and 59.3% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.473 million contracts, up 26,675, or 1.84%, from 1.446 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 $150.00 to $154.40 per cwt, compared with the previous week’s range of $145.28 to $153.00. FOB dressed steers, and heifers went for $233.15 to $241.44 per cwt, versus $228.72 to $239.18.
The USDA choice cutout Friday was down $1.43 per cwt at $263.75 while select was down $1.16 at $231.90. The choice/select spread narrowed to $31.85 from $32.12 with 92 loads of fabricated product and 28 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 $2.15 to $2.25 a bushel over the Dec futures and for southwest Kansas were steady at $1.00 over Dec, which settled at $6.81, down 1 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $176.99 per cwt down $0.64. This compares with Friday’s Nov contract settlement of $177.82, down $0.17.