Large commodity index funds, otherwise known as managed money, increased their collective net long live cattle futures position in the week ended Tuesday, their ninth straight week of increases.
In its weekly Commitments of Traders report Friday, the Commodity Futures Trading Commission also said hedgers trimmed their total net short live cattle position.
FUNDS BOOST NET LONG CATTLE POSITION
Tuesday, managed money had a collective net long live cattle position of 111,853 contracts, up 4,810, or 4.49%, from 107,043 a week earlier. It was their largest net long position since July 18, 2023, when it was 111,815 contracts.
Also on Tuesday, cattle owners, or commercial traders, had a total net short live cattle position of 124,737 contracts, down 1,084, or 0.86%, from 125,821 a week earlier.
The CFTC said managed money arrived at their new cattle position by adding 4,152 long positions, covering 658 short positions and unwinding 1,571 spread positions. This left them in control of 36.0% of total long open interest, 3.7% of total short open interest and 12.7% of total spread open interest.
Commercial traders reached their new cattle position by adding 2,613 long positions and 1,529 short positions, leaving them holding 12.6% of total long open interest and 28.6% of total short open interest.
The CFTC also said total live cattle open interest Tuesday was 346,308 contracts, up 1,191, or 0.35%, from 345,117 a week earlier.
The most-active Feb contract ended the CFTC-reporting week higher after a sharp rally Tuesday. It settled at $188.00 per cwt, versus $186.12 a week earlier.
MANAGED MONEY ALSO GETS LONGER CORN
Managed money Tuesday had a collective net long Chicago corn position of 107,099 contracts, up 7,320, or 7.74%, from 99,779 a week earlier and their fifth straight week of buying corn.
Commercials had a total net short position of 382,598 contracts, up 827, or 0.22%, from 381,771 a week earlier for their fifth straight week of selling.
The CFTC said managed money arrived at their new corn position by liquidating 7,274 long positions, covering 14,594 short positions and unwinding 10,723 spread positions. This left them with 17.1% of total long open interest, 10.7% of total short open interest and 11.4% of total spread open interest.
Commercials reached their new position by adding 6,615 long positions and 7,442 short positions, leaving them with 27.9% of total long open interest and 50.8% of total short open interest.
Corn open interest Tuesday totaled 1.667 million contracts, down from 1.674 million a week earlier.
The Mar contract settled at $4.37 ¾ a bushel, down from $4.40 ¼ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $185.00 per cwt to $190.15, compared with the previous week’s range of $186.88 to $193.00 per cwt. FOB dressed steers, and heifers went for $290.32 per cwt to $295.19, compared with $293.96 to $299.32.
The USDA choice cutout Friday was up $0.62 per cwt at $307.41 while select was down $0.85 at $272.07. The choice/select spread widened to $35.34 from $33.87 with 85 loads of fabricated product and 13 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $325.27 per cwt, and 50% beef was $75.94.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.42 to $1.54 a bushel over the Dec corn contract and unchanged in Kansas at $0.25 over Dec, which settled at $4.25 1/2 a bushel, down $0.01 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $254.54 per cwt, up $0.27. This compares with Friday’s Jan contract settlement of $254.30, up $0.85.