Managed Money Grows Long Live Cattle Position

Large commodity investment firms, called managed money in the trade, increased their collective net long live cattle futures position during the week ended Tuesday as hedgers boosted their total net short position.

The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.

 

MANAGED MONEY BUYS CATTLE

 

As of Tuesday, when the CFTC stopped counting, managed money had a net long live cattle position of 81,318 contracts, up 3,731, or 4.81%, from 77,587 a week earlier.  It was their largest net long cattle position since Dec. 14 when it was 78,881 contracts.

At the same time, hedgers, called commercial traders, had a total net short cattle position of 153,260 contracts, up from 150,733 a week earlier.  It was their largest short position since Aug. 31 when it was 160,142 contracts.

The CFTC said managed money arrived at their new live cattle position by adding 741 long positions, liquidating 2,990 short positions and putting on 3,894 spread positions.  This left them with 28.9% of total long open interest, 6.0% of total short open interest and 12.8% of total spread open interest.

Commercials got to where they were Tuesday by adding 4,006 long positions and 6,533 short positions, leaving them in charge of 11.7% of total long open interest and 54.9% of total short open interest.

The CME Group said total live cattle open interest Tuesday came to 359,227 contracts, up 13,770, or 3.99%, from 345,457 a week earlier.

CME data also showed that the most-active Apr contract rose in value during the CFTC week to settle Tuesday at $146.90 per cwt, compared with $146.17 a week earlier.

 

MANAGED MONEY SELLS CORN

 

Tuesday, managed money had a composite net long Chicago corn futures position of 323,199 contracts, down 11,251, or 3.36%, from 334,450 a week earlier.  It was their smallest net short position since Jan. 18 when it was 318,944 contracts.

Commercials Tuesday held a net short position of 678,901 contracts, up 4,864, or 0.72%, from 674,037 a week earlier.

The CFTC said managed money arrived at their new corn position by liquidating 11,165 long positions, adding 86 short positions and putting on 15,093 spread positions.  This left them in control of 22.6% of total long open interest, 2.5% of total short open interest and 7.8% of total spread open interest.

Commercials got to where they were by adding 14,614 long positions and 19,478 short positions, leaving them with 23.8% of total long open interest and 66.0% 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 $140.55 to $143.00 per cwt, compared with the previous week’s range of $139.02 to $141.83.  FOB dressed steers and heifers went for $218.70 to $223.00 per cwt, versus $216.43 to $220.53.

The USDA choice cutout Friday was down $3.74 per cwt at $265.85, while select was off $2.22 at $262.63.  The choice/select spread narrowed to $3.22 from $4.74 with 102 loads of fabricated product and 19 loads of trimmings and grinds sold into the spot market.

The USDA reported that basis bids for corn from feeders in the Southern Plains were unchanged at $1.20 to $1.30 a bushel over the Mar futures and for southwest Kansas were unchanged at $0.20 over Mar, which settled at $6.54 1/4 a bushel, up $0.04 1/4.

No contracts were tendered for delivery against Feb on Friday.

The CME Feeder Cattle Index for the seven days ended Thursday was $162.14 per cwt unchanged.  This compares with Friday’s Mar contract settlement of $165.42 per cwt, down $0.77.