After a one-week lull, large commodity investment funds, or managed money, resumed building their collective net long live cattle futures position in the week ended Tuesday.
At the same time, commercial traders, those who own, or will own, the cattle, increased their total net short cattle position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
MANAGED MONEY BUYS CATTLE
As of Tuesday, managed money’s collective net long live cattle position stood at 60,443 contracts, up 2,446, or 4.22%, from 57,997 a week earlier.
Commercial traders had a total net short cattle position Tuesday of 117,405 contracts, up 1,961, or 1.70%, from 115,444 a week earlier.
The CFTC said managed money arrived at their new net long live cattle position by adding 2,297 long positions, covering 149 short positions and putting on 5,070 spread positions. This left them in control of 29.2% of total long open interest, 8.8% of total short open interest and 14.5% of total spread open interest.
Commercial traders got to their new cattle position by adding 2,196 long positions and 4,157 short positions, leaving them with 10.2% of total long open interest and 49.7% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 296,732 contracts, up 11,039, or 3.86%, from 285,693 a week earlier.
CME Group data also showed that the most-active Oct futures contract rose in value during the CFTC reporting week to settle Tuesday at $145.05 per cwt, compared with $143.82 a week earlier.
FUNDS ALSO BUY CORN
At the same time, managed money bet on Chicago corn to rise in value as they bought more of it to pad their collective net long position. As of Tuesday, managed money had a net long corn position of 210,231 contracts, up 5,023, or 2.45%, from 205,208 a week earlier. It was their largest such position since June 28 when it was 211,933 contracts.
Commercials, had a total net short corn position Tuesday of 468,660 contracts, up 7,221, or 1.56%, from 461,439 a week earlier. It was their largest net short position since July 5 when it was 472,101 contracts.
The CFTC said managed money arrived at their new corn position by adding 2,814 long positions, covering 2,209 short positions and putting on 6,132 spread positions. This left them with 20.2% of total long open interest, 3.8% of total short open interest and 8.4% of total spread open interest.
Commercials got to where they were by liquidating 7,091 long positions and adding 130 short positions, leaving them with 24.3% of total long open interest and 60.9% of totqal short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $141.00 to $150.00 per cwt, compared with the previous week’s range of $142.00 to $147.63. FOB dressed steers, and heifers went for $223.30 to $228.00 per cwt, versus $222.42 to $228.22.
The USDA choice cutout Friday was down $0.75 per cwt at $257.26 while select was down $1.31 at $234.73. The choice/select spread widened to $22.53 from $21.97 with 97 loads of fabricated product and 22 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $2.60 to $2.75 a bushel over the Sep futures, which settled at $6.98 1/2 a bushel and for southwest Kansas were steady at $0.85 over Dec, which settled at $6.85, up $0.16 1/2.
The CME Feeder Cattle Index for the seven days ended Thursday was $181.24 per cwt up $0.93. This compares with Friday’s Sep contract settlement of $183.00, up $0.67.