Managed money, a proxy for large commodity index funds, nudged their collective net long live cattle futures positions higher during the week ended Tuesday as hedgers added a small number to their net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday, which chronicles major players’ aggregated positions.
FUNDS GET LONGER CATTLE
As of Tuesday, the total net long position of managed money in live cattle futures was 66,415 contracts, up 2,056, or 3.19%, from 64,359 a week earlier. This was their largest net long position since April 20 when it was 66,819 contracts.
At the same time, commercial traders, those who own the cattle at some point and generally are hedgers, had a cumulative net short position totaling 147,803 contracts, up 369, or 0.25%, from 147,434 a week earlier.
The CFTC said managed money arrived at their new cattle position by adding 2,658 long positions, 602 short positions and unwinding 1,037 spread positions. This left their net position representing 29.5% of total long open interest, 6.3% of total short open interest and 8.3% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 1,712 long positions and covering 1,343 short positions, leaving them with 7.9% of total long open interest and 59.6% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 286,144 contracts, up 308, or 0.11%, from 285,836 a week earlier.
CME data also showed that the most-active Oct contract held steady in value during the week, settling Tuesday at $128.12 per cwt, the same as a week earlier.
FUNDS GET LONGER CORN
Tuesday, managed money’s collective net long position in corn grew to 269,082 contracts, up 22,611, or 9.17%, from 246,471 a week earlier and their largest since June 8 when it was 277,553 contracts.
Commercial traders’ corn position Tuesday was net short by 520,314 contracts, up 17,698, or 3.52%, from 502,616 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 15,738 long positions, covering 6,873 short positions and putting on seven new spread positions. This left them with 20.5% of total long open interest, 1.8% of total short open interest and 8.8% of total spread open interest.
CATTLE, BEEF RECAP
A week ago, the USDA reported an average formula net live-basis price for all steers and heifers of $124.29 per cwt, and a formula dressed basis price of $197.67.
The USDA reported a formula base price for live FOB fed steers Friday of $122.89 per cwt and for FOB fed heifers of $123.08. FOB dressed steers went for $191.40, while FOB dressed heifers sold at $193.37.
The USDA choice cutout Friday was up $3.43 per cwt at $345.06, while select was up $2.12 at $318.53. The choice/select spread widened to $26.53 from $25.22 with 56 loads of fabricated product and 29 loads of trimmings and grinds sold into the spot market.
The USDA reported Thursday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.60 to $2.00 a bushel over the Sep futures and for southwest Kansas were unchanged at $0.70 over Sep, which settled at $5.38 3/4 a bushel, down $0.11 1/4.
No contracts were tendered for delivery Friday against Aug cattle futures. Twenty-five steer and no heifer contracts were retendered at two. Twenty-five steer contracts were demanded at two.
The CME Feeder Cattle Index for the seven days ended Thursday was $155.79 per cwt up $0.37. This compares with Friday’s Aug contract settlement of $159.02 per cwt, up $0.75.