Large commodity index funds, known as managed money, continued to extend their collective net long live cattle futures position in the week ended last Tuesday, Oct. 22, according to the Commodity Futures Trading Commission.
The CFTC made the data known Friday in its weekly Commitments of Traders report, which also showed that cattle hedgers lengthened their total net short position in the same week.
FUNDS BUY MORE CATTLE
Last Tuesday, managed money had a collective net long live cattle position of 92,825 contracts, up 4,524, or 5.12%, from 88,301 a week earlier and their fifth straight week of taking a larger net long position.
Hedgers, or commercial traders, last Tuesday had a total net short live cattle position of 116,759 contracts, up 2,049, or 1.79%, from 114,710 a week earlier. The move also was their fifth straight week of taking on a larger total net short position.
The CFTC said managed money arrived at their new net long live cattle position by adding 4,637 long positions, 113 short positions and 3,376 new spread positions. This left them in charge of 32.4% of total long open interest, 4.4% of total short open interest and 14.9% of total spread open interest.
Commercial traders reached their new cattle position by adding 269 long positions and 2,318 short positions, leaving them with 11.5% of total long open interest and 46.6% of total short open interest.
CFTC data also showed that total live cattle open interest last Tuesday was 332,460 contracts, up 8,028, or 2.47%, from 324,432 a week earlier.
CME Group data showed the most-active Dec contract rose in value during the CFTC-reporting week to settle last Tuesday at $188.12 per cwt, compared with $186.52 a week earlier.
FUNDS EASE HARD CORN SELL
Last Tuesday, managed money had a collective net short corn position of 87,858 contracts, down 19,590, or 18.2%, from 107,448 a week earlier.
At the same time, commercials had a total net short corn position of 209,206 contracts, up 36,495, or 21.1%, from 172,711 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 36,146 long positions, 16,556 short positions and unwinding 16,633 spread positions. This left them with 13.8% of total long open interest, 19.2% of total short open interest and 13.8% of total spread open interest.
Commercials reached their new position by adding 32,157 long positions and 68,652 short positions, leaving them holding 28.3% of total long open interest and 41.0% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $194.08 per cwt to $194.48, compared with last week’s range of $187.95 to $194.48 per cwt. FOB dressed steers, and heifers went for $296.27 per cwt to $296.76, compared with $293.66 to $298.77.
The USDA choice cutout Monday was up $1.26 per cwt at $323.50 while select was down $2.90 at $292.18. The choice/select spread widened to $31.32 from $27.16 with 81 loads of fabricated product and 74 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $349.28 per cwt, and 50% beef was $70.53.
The USDA said basis bids for corn from feeders in the Southern Plains were up $0.01 to $0.05 at $1.26 to $1.45 a bushel over the Dec corn contract and unchanged in Kansas at $0.25 over Dec, which settled at $4.10 3/4 a bushel, down $0.04 1/2.
No cattle contracts were tendered for delivery Monday against the Oct contract.
The CME Feeder Cattle Index for the seven days ended Friday was $249.37 per cwt, up $0.28. This compares with Monday’s Oct contract settlement of $250.07, up $0.45 and Nov’s $249.20, up $0.62.