As it continues to catch up with past reports that were delayed by the government shutdown, the Commodity Futures Trading Commission’s latest Commitments of Traders report detailed the trading stance of large commodity index funds and cash cattle traders.
MANAGED MONEY BOOSTS NET LONG CATTLE POSITION
In the latest report outlining trader stances for the week ended Tuesday, Dec. 16, the COT report said those large commodity index firms, better known as managed money, had a collective net long live cattle futures position of 89,587 contracts, up 3,153 contracts, or 3.65%, from 86,434 a week earlier.
At the same time, cash cattle traders, called commercial traders, had a total net short live cattle futures position of 117,913 contracts, up 2,162, or 1.87%, from 115,751 a week earlier.
On Dec. 16, managed money held 110,648 long live cattle positions, or 34.3% of total open interest, for a gain of 4,933 contracts from a week earlier. They also held 21,059 short positions, or 6.5% of total open interest, for a gain of 1,780, and they held 36,889 spread positions, or 11.4% of total open interest, for a gain of 1,132.
Meanwhile, commercials held 45,721 long live cattle positions, or 14.2% of total open interest, for a decline of 1,948 from a week earlier, and they held 163,634 short positions, or 50.8% of total open interest, for a gain of 214.
Total live cattle open interest at the CME on Dec. 16 was 322,316 contracts, up 3,807, or 1.20%, from 318,509 a week earlier.
The Feb live-cattle contract rose to settle at $230.70 per cwt on Dec. 16, compared with $226.95 a week earlier.
FUNDS AGGRESSIVE CORN SELLERS
On Dec. 16, managed money had a collective net short corn futures position of 53,366 contracts, down from being long 18,736 contracts a week earlier.
At the same time, commercials had a total net short corn position of 233,812 contracts, down 59,001, or 20.1%, from 292,813 a week earlier.
That Tuesday, managed money held 234,318 long corn positions, or 15.4% of total open interest, for a decline of 13,790 contracts from a week earlier. They also held 287,684 short positions, or 18.9% of total open interest, for a gain of 58,312, and they held 206,383 spread positions, or 13.6% of total open interest, for a gain of 5,922.
Commercials held 395,883 long positions, or 26.0% of total open interest, for a gain of 36,542 from a week earlier. They also held 629,695 short positions, or 41.4% of total open interest, for a decline of 22,459 contracts.
Total corn open interest at the CME came to 1.523 million contracts, up from 1.474 million a week earlier.
The Mar contract settled at $4.36 ½ a bushel on Dec. 16, down from $4.48 a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $230.02 per cwt to $230.36, compared with last week’s range of $227.71 to $230.49 per cwt. FOB dressed steers and heifers went for $358.60 per cwt to $359.52, compared with $359.54 to $363.78.
The USDA choice cutout Friday was down $1.88 per cwt at $349.33 while select was up $1.82 at $345.62. The choice/select spread narrowed to $3.71 from $7.41 with 98 loads of fabricated product and 15 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $395.97 per cwt, and 50% beef was $139.71.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $0.90 to $1.10 a bushel over the Mar corn contract, which settled at $4.42 1/4, down $0.07 3/4.
No live cattle contracts were tendered for delivery Monday.
The CME Feeder Cattle Index for the seven days ended Friday was $356.00 per cwt, up $6.68. This compares with Monday’s Jan contract settlement of $347.00, up $0.82.