Large commodity index funds, known as managed money, again increased their collective net long live cattle futures position in the week ended Tuesday as hedgers boosted their total net short position.
The information was made available by the Commodity Futures Trading Commission in its weekly Commitments of Traders report Friday, which reports activity as of the preceding Tuesday.
FUNDS GET EVEN LONGER
Tuesday, managed money had a collective net long live cattle positi9on of 136,213 contracts, up 7,451, or 5.79%, from 128,762 a week earlier. It was their 13th straight weekly increase in their net long position and the largest in more than two years.
At the same time, hedgers, called commercial traders, had a total net short live cattle position of 147,694 contracts, up 10,442, or 7.61%, from 137,252 a week earlier and their largest position in more than two years.
The CFTC said managed money arrived at their new cattle position by adding 1,187 long positions, covering 1,933 short positions and unwinding 2,634 spread positions. This left them holding 18.2% of total long open interest, 30.4% of total short open interest and 19.3% of total spread open interest.
Commercials reached their new cattle position by liquidating 1,635 long positions and adding 3,882 short positions, leaving them with 13.5% of total long open interest and 29.2% of total short open interest.
The CFTC also said total live cattle open interest Tuesday was 350,422 contracts, up 12,866, or 3.81%, from 337,556 a week earlier.
CME Group data showed the most-active Feb contract rose in value during the CFTC-reporting week to settle at $189.75 per cwt, compared with $189.02.
FUNDS TRIM LONG CORN POSITION
Tuesday, managed money had a collective net long Chicago corn position of 157,705 contracts, down 7,867, or 4.75%, from 165,572 a week earlier.
Meanwhile, commercial traders had a total net short corn position of 458,154 contracts, up 2,705, or 0.59%, from 455,449 a week earlier.
The CFTC said managed money arrived at their new position by liquidating 17,475 long positions, covering 9,608 short positions and putting on 19,679 spread positions. This left them with 19.2% of total long open interest, 9.4% of total short open interest and 12.9% of total spread open interest.
Commercials reached their new position by adding 11,225 long positions and 13,930 short positions, leaving them holding 25.4% of total long open interest and 53.7% of total short open interest.
Total corn open interest Tuesday was 1.617 million contracts, up from 1.583 million a week earlier while the most-active Mar contract declined in value to $4.43 ½ a bushel from $4.40 ¾.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $191.52 per cwt to $194.79, compared with the previous week’s range of $191.08 to $193.82 per cwt. FOB dressed steers, and heifers went for $299.65 per cwt to $305.97, compared with $297.79 to $304.38.
The USDA choice cutout Friday was down $4.84 per cwt at $315.85 while select was up $1.80 at $285.91. The choice/select spread narrowed to $29.94 from $36.58 with 85 loads of fabricated product and 22 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $318.86 per cwt, and 50% beef was $77.46.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.19 to $1.35 a bushel over the Mar corn contract, which settled at $4.46 1/4, up $0.05 1/2.
No delivery intentions were posted for the Dec live cattle contract Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $262.15 per cwt, down $0.08. This compares with Friday’s Jan contract settlement of $255.60, up $1.12.