Large commodity index funds, known as managed money, nudged their collective net long live cattle position higher during the week ended Tuesday, while hedgers cut their collective net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday, which provides data for different types of traders as of the previous Tuesday.
FUNDS NUDGE COMMITMENTS HIGHER
Managed money’s total net long live cattle position as of Tuesday came to 61,678 contracts, up 1,861, or 3.11%, from 59,817 a week earlier. It was their largest net long position since June 29 when it was 61,794 contracts.
Also as of Tuesday, those who own the cattle at some point and theoretically could make or take delivery of a futures contract, known as commercial traders, had a total net short position of 142,815 contracts, 4,036, or 2.75%, down from 146,851 a week earlier.
The CFTC said managed money arrived at their new net long cattle position by adding seven long positions, covering 1,854 short positions and unwinding 3,087 spread positions. This left their total position holding 27.6% of total long open interest, 6.7% of total short open interest and 9.1% of total spread open interest.
Commercial traders got to where they were Tuesday by adding 1,099 long positions and covering 2,937 short positions, leaving them with 9.1% of total long open interest and 57.6% of total short open interest.
The CME Group said total live cattle open interest Tuesday came to 294,665 contracts, down from 301,059 a week earlier.
CME Group data also show that the most-active Oct contract declined in value during the CFTC reporting week to settle Tuesday at $128.15 per cwt, compared with $128.42 the previous Tuesday.
FUNDS BUY CORN
As of Tuesday, managed money’s total net long corn position came to 242,677 contracts, up 16,728, or 7.40%, from 225,949 a week earlier. It was their largest net long position since June 22 when it was 242,811 contracts.
At the same time, commercial traders’ total net short corn position came to 514,177 contracts, up 364, or 0.07%, from 513,813 a week earlier.
The CFTC said managed money arrived at their new net long position by adding 15,548 long positions, covering 1,180 short positions and unwinding 9,963 spread positions. This left them in charge of 18.5% of total long open interest, 2.0% of total short open interest and 10.3% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 8,766 long positions and covering 8,402 short positions, leaving them with 26.1% of total long open interest and 61.1% of total short open interest.
CATTLE, BEEF RECAP
Fed cattle traded last week at $120 to $125 per cwt, up $1 to $2 from the previous week. Dressed-basis trades were done at $196 to $198 per cwt, steady to up $2.
The USDA choice cutout Friday was up $3.68 per cwt at $296.26, while select was up $3.32 at $277.09. The choice/select spread widened to $19.17 from $18.81 with 69 loads of fabricated product and 24 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.86 to $1.91 a bushel over the Sep futures and for southwest Kansas were unchanged at $0.70 over Sep, which settled at $5.55 a bushel, down $0.00 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $156.55 per cwt up $0.75. This compares with Friday’s Aug contract settlement of $159.85 per cwt, up $2.20.