Large commodity index funds, known as managed money, barely increased their collective net long live cattle futures position in the week ended Tuesday, while hedgers trimmed their total net short position more aggressively.
The data came from the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
FUNDS’ POSITION BARELY HIGHER
Tuesday, managed money had a collective net long live cattle position of 149,756 head, up from 149,725 a week earlier, a gain of 31 contracts, or 0.02%. It was, however, the highest in more than two years.
Meanwhile, hedgers, known as commercial traders, Tuesday had a total net short live cattle position of 146,034 contracts, down from 151,161 a week earlier for a decline of 5,127 contracts, or 3.39%.
The CFTC said managed money arrived at their new live cattle position by adding 2,612 long positions, leaving them with 43.3% of total open interest; adding 2,581 short positions, leaving them with 3.8% of total open interest, and unwinding 1,046 spread positions, leaving them with 9.9% of total open interest.
Commercials reached their new live cattle position by adding 6,369 long positions, leaving them with 11.2% of total open interest, and 1,242 short positions, leaving them with 49.7% of total open interest.
The CFTC also said total live cattle open interest Tuesday was 378,671 contracts, up 8,639, or 2.33%, from 370,032 a week earlier.
CME Group data showed the most-active Apr contract rose during the CFTC-reporting week to settle at $197.32 per cwt, compared with $197.30 a week earlier.
FUNDS EXPAND LONG CORN POSITION
Tuesday, managed money had a collective net long Chicago corn position of 321,684 contracts, up 29,521, or 10.1%, from 292,163 a week earlier.
Commercials had a total net short corn position of 657,909 contracts, up 59,712, or 9.98%, from 598,197 a week earlier.
The CFTC said managed money arrived at their new position by adding 35,109 long positions, leaving them with 21.9% of total open interest; adding 5,588 short positions, leaving them with 5.3% of total open interest and 38,442 spread positions, leaving them with 16.1% of total open interest.
Commercials reached their new position by liquidating 12,601 long positions, leaving them with 21.0% of total open interest, and adding 47,111 short positions, leaving them with 54.8% of total open interest.
Corn open interest Tuesday was 1.943 million contracts, up 102,910, or 5.59%, from 1.840 million a week earlier.
The most-active Mar contract rose in value during the CFTRC-reporting week to settle at $4.90 a bushel, compared with $4.74 ½ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $201.58 per cwt to $204.93, compared with the previous week’s range of $199.88 to $208.09 per cwt. FOB dressed steers, and heifers went for $315.83 per cwt to $321.61, compared with $312.04 to $319.72.
The USDA choice cutout Friday was down $3.04 per cwt at $327.92 while select was off $0.92 at $316.29. The choice/select spread narrowed to $11.63 from $13.75 with 108 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 $361.29 per cwt, and 50% beef was $116.38.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.20 to $1.35 a bushel over the Mar corn contract, which settled at $4.86 1/2, down $0.03 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $278.28 per cwt, up $0.73. This compares with Friday’s Jan contract settlement of $278.70, up $1.62.