Large commodity index investment firms, known as managed money, 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.
MANAGED MONEY BUYS CATTLE
Tuesday, managed money had a collective net long live cattle position of 79,393 contracts, up 12,675, or 19.0%, from 66,718 a week earlier. It was their largest net long position since Oct. 17 when it was 83,417 contracts.
At the same time, hedgers, better known as commercial traders, since they deal primarily in a commercial cattle market, had a total net short live cattle position of 100,443 contracts, up 10,117, or 11.2%, from 90,326 a week earlier. It was their largest net short position since May 2 when it was 102,200 contracts.
The CFTC said managed money arrived at their new cattle position by adding 9,100 long positions, covering 3,575 short positions and putting on 1,457 spread positions. This left them with 29.1% of total long open interest, 5.0% of total short open interest and 16.9% of total spread open interest.
Commercials got to where they were by liquidating 4,618 long positions and adding 5,499 short positions, leaving them with 11.4% of total long open interest and 41.9% of total short open interest.
The CFTC also reported total live cattle open interest Tuesday at 329,036 contracts, up 3,120, or 0.96%, from 325,916 a week earlier.
CME Group data showed the most-active Oct contract rose in value during the CFTC-reporting week to settle at $187.45 per cwt, compared with $186.12, although in between it also set a contract high at $189.05 on Thursday.
FUNDS BUY CORN
Tuesday, managed money had a collective net short corn position of 300,310 contracts, down 33,575, or 10.1%, from 333,885 a week earlier.
Commercials Tuesday, had a total net short corn position of 3,965 contracts, up 2,257, or 132.1%, from 1,708 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 1,557 long positions, covering 32,018 short positions and unwinding 4,349 spread positions. This left them with 9.8% of total long open interest, 28.6% of total short open interest and 14.4% of total spread open interest.
Commercials got to their new position by adding 7,196 long positions and 9,453 short positions, leaving them holding 28.2% of total long open interest and 28.4% of total short open interest.
CFTC data showed total corn open interest Tuesday at 1.598 million contracts, up from 1.597 million a week earlier.
The most-active Dec contract settled at $4.05 a bushel versus $4.17 ¼.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $188.53 per cwt to $200.62, compared with the previous week’s range of $188.00 to $198.00 per cwt. FOB dressed steers, and heifers went for $296.77 per cwt to $310.09, compared with $296.12 to $308.96.
The USDA choice cutout Friday was up $0.98 per cwt at $313.77 while select was down $0.29 at $297.17. The choice/select spread widened to $16.60 from $15.33 with 92 loads of fabricated product and 18 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $373.61 per cwt, and 50% beef was $168.01.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.46 to $1.70 a bushel over the Sep corn contract, which settled at $3.86 1/2 a bushel, up $0.04 1/2.
The CME Feeder Cattle Index for the seven days ended Thursday was $257.72 per cwt, down $0.10. This compares with Friday’s Aug contract settlement of $249.65, down $3.50.