Large commodity investment firms, known as managed money, raised their collective net long live cattle position in the week ended Tuesday as hedgers boosted their total net short positions.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS NET LONG CATTLE
As of Tuesday, managed money had a net long live cattle position of 73,789 contracts, up 9,882, or 15.5%, from 63,907 a week earlier. It was their fourth straight increase in net long position and put them at their highest level since Aug. 31 when it was 80,207 contracts.
At the same time, commercial traders, those who theoretically could make or take delivery and usually are hedgers in the futures market, had a total net short position Tuesday of 143,542 contracts, up 5,839, or 4.24%, from 137,703 a week earlier.
The CFTC said managed money arrived at their new cattle position by adding 6,374 long positions, liquidating 3,508 short positions and unwinding 2,526 spread positions. This left them holding 30.1% of total long open interest, 6.3% of total short open interest and 10.7% of total spread open interest.
Commercials got to where they were by adding 1,123 long positions and 6,962 short positions, leaving them with 9.4% of total long open interest and 55.7% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 310,096 contracts, up 426, or 0.14%, from 309,670 a week earlier.
CME data also showed that the most-active Feb contract declined during the CFTC reporting week to settle Tuesday at $137.90 per cwt, compared with $139.42 a week earlier.
FUNDS CUT CORN POSITION
Meanwhile, managed money cut its collective net long corn position to 303,534 contracts Tuesday, down 58,475, or 16.2%, from 362,009 a week earlier.
And commercial traders had a new net short position Tuesday of 614,070 contracts, down 2,440, or 0.40%, from 616,510 a week earlier.
The CFTC said managed money reached its new position by liquidating 46,877 long positions, adding 11,535 short positions and unwinding 15,123 spread positions. This left them in charge of 42.3% of total long open interest, 2.7% of total short open interest and 8.3% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 57,085 long positions and covering 59,525 short positions, leaving them with 24.4% of total long open interest and 68.1% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.405 million contracts, down 206,751, or 12.8%, from 1.612 million a week earlier.
Mar corn fell to $4.67 ½ a bushel from $5.88 ¼.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $138.98 to $140.92 per cwt, compared with the previous week’s range of $131.81 to $135.75. FOB dressed steers and heifers went for $209.66 to $218.80 per cwt, versus $205.64 to $209.84.
The USDA choice cutout Friday was up $2.34 per cwt at $274.36, while select was up $0.39 at $258.64. The choice/select spread widened to $15.72 from $13.77 with 94 loads of fabricated product and 23 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.35 to $1.45 a bushel over the Dec futures and for southwest Kansas were unchanged at $0.40 over Dec, which settled at $5.86 a bushel, up $0.09.
The CME Feeder Cattle Index for the seven days ended Thursday was $161.58 per cwt up $0.24. This compares with Friday’s Jan contract settlement of $164.12 per cwt, down $1.65.