Managed money, a proxy for large commodity investment funds, nudged their collective net long live cattle position higher in the week ended Tuesday, Dec 20.
Data from the Commodity Futures Trading Commission’s weekly Commitments of Traders report also showed that cattle owners cut their total net short live cattle position.
FUNDS UP LONG POSITION
Managed money last Tuesday had a collective net long live cattle futures position of 67,127 contracts, up 213, or 0.32%, from 66,914 a week earlier. It was their largest net long position since Sep. 20 when it was 70,509 contracts.
Cattle owners, better known as commercial traders, had a total net short live cattle position last Tuesday of 104,148 contracts, down 2,345, or 2.20%, from 106,493 a week earlier.
The CFTC said managed money arrived at their new net long cattle position by liquidating eight long positions, covering 221 short positions and putting on 4,968 spread positions. This left them holding 32.1% of total long open interest, 9.8% of total short open interest and 15.5% of total spread open interest.
Commercial traders got to where they were last Tuesday by liquidating 301 long positions and covering 2,646 short positions, leaving them with 12.5% of total long open interest and 47.0% of total short open interest.
The CME Group published data that showed total live cattle open interest last Tuesday was 302,134 contracts, up from 296,049 a week earlier, a gain of 6,085, or 2.06%.
CME data also showed that the most-active Feb contract declined in value during the CFTC-reporting week to settle at $155.57 per cwt, versus $156.35 a week earlier.
MANAGED MONEY SELLS CORN
Last Tuesday, managed money had a collective net long Chicago corn position of 113,554 contracts, down 14,072, or 11.03%, from 127,626 a week earlier.
At the same time, commercial traders had a total net short corn position of 376,434 contracts, down from 399,826 a week earlier, for a decline of 23,392, or 5.85%.
The CFTC said managed money arrived at their new net long corn position by liquidating 11,883 long positions, adding 2,199 short positions and putting on 465 new spread positions. This left them in charge of 15.3% of total long open interest, 5.8% of total short open interest and 9.9% of total spread open interest.
Commercials got to where they were by liquidating 8,680 long positions and covering 32,072 short positions, leaving them holding 25.8% of total long open interest and 57.5% of total short open interest.
The CME Group said corn open interest last Tuesday totaled 1.188 million contracts, down from 1.205 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 $156.04 to $157.34 per cwt, compared with the previous week’s range of $155.00 to $158.55. FOB dressed steers, and heifers went for $243.79 to $249.01 per cwt, versus $243.78 to $250.21.
The USDA choice cutout Friday was up $6.74 per cwt at $271.95 while select was up $3.36 at $245.47. The choice/select spread widened to $26.48 from $23.40 with 52 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were steady at $1.90 to $2.10 a bushel over the Mar futures and for southwest Kansas were unchanged at $1.00 over Mar, which settled at $6.66 1/4, up $0.05 3/4.
No cattle contracts were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $176.75 per cwt down $1.08. This compares with Friday’s Jan contract settlement of $184.00, down $0.02.