During the week ended Tuesday, large commodity index funds, or managed money, increased their collective net long live cattle future position while hedgers boosted their total net short position, according to data from Friday’s weekly Commitments of Traders report from the Commodity Futures Trading Commission.
FUNDS BUY CATTLE
As of Tuesday, managed money, had a collective net long live cattle position of 66,914 contracts, up 6,659, or 11.1%, from 60,255 a week earlier. It was their largest position since Sep 20 when it was 70,509 contracts.
At the same time, hedgers, better known as commercial traders, had a total net short live cattle position of 106,493 contracts, up from 105,161 a week earlier. It was their largest net short position since Nov. 8 when it was 109,651 contracts.
The CFTC said managed money arrived at their new net long cattle position by adding 6,336 long positions, covering 323 short positions and unwinding 3,445 spread positions. This left them holding 32.7% of total long open interest, 10.1% of total short open interest and 14.1% of total spread open interest.
Commercial traders got to where they were Tuesday by adding 1,929 long positions and 3,261 short positions, leaving them in charge of 12.9% of total long open interest and 48.8% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 296,049 contracts, up 3,762, or 1.29%, from 292,287 a week earlier.
The CME also said the most-active contract rose in value during the week to settle Tuesday at $156.35 per cwt, compared with $153.62 a week earlier.
FUNDS ALSO BUY CORN
In addition to buying cattle, managed money also bought Chicago corn futures during the CFTC week, ending Tuesday with 127,626 contracts, up 8,437, or 7.08%, from 119,189 a week earlier.
Commercials upped their total net short corn position to 399,826 contracts, up 9,795, or 2.51%, from 390,031 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 1,149 long positions, covering 9,586 short positions and putting on 5,822 spread positions. This left them in possession of 16.1% of total long open interest, 5.5% of total short open interest and 9.7% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 20,606 long positions and 10,811 short positions, leaving them with 26.2% of total long open interest and 59.3% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.205 million contracts, down 27,048, or 2.19%, from 1.232 million a week earlier.
CME data also showed that the most-active Mar contract rose in value during the week to $6.53 ½ a bushel from $6.37 ¼.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $155.00 to $158.09 per cwt, compared with the previous week’s range of $155.00 to $159.07. FOB dressed steers, and heifers went for $243.78 to $250.21 per cwt, versus $243.70 to $251.95.
The USDA choice cutout Friday was up $8.53 per cwt at $262.83 while select was up $6.94 at $235.45. The choice/select spread widened to $27.38 from $25.79 with 57 loads of fabricated product and 14 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 $6.53, down $0.00 1/2.
No cattle contracts were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $179.51 per cwt up $0.01. This compares with Friday’s Jan contract settlement of $183.77, up $0.72.