After three weeks of gains, managed money, a proxy for large commodity index funds, had a smaller collective net long position in live cattle futures Tuesday, as hedgers trimmed their total net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday for business as of Tuesday.
FUNDS LESS LONG CATTLE
As of Tuesday, managed money’s collective net long live cattle position stood at 38,286 contracts, down 2,564, or 6.28%, from 40,850 a week earlier.
Hedgers, better known as commercial traders, or those who own, or will own, the cattle, had a collective net short cattle position Tuesday of 123,510 contracts, down 1,118, or 0.90%, from 124,628 a week earlier.
The CFTC said managed money arrived at their new cattle position by liquidating 1,670 long positions, adding 894 short positions and putting on 6,394 spread positions. This left them holding 25.1% of total long open interest, 11.7% of total short open interest and 10.8% of total spread open interest.
Also as of Tuesday, commercial traders got to their new cattle position by liquidating 1,977 long positions and covering 3,095 short positions, leaving them in charge of 9.3% of total long open interest and 52.6% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 285,756 contracts, up 3,151, or 1.11%, from 282,605 a week earlier.
CME Group data also showed that the most-active Dec contract rose in value during the week ended Tuesday to settle at $131.45 per cwt from $130.02.
FUNDS GET LONGER CORN
The CFTC data also showed that managed money had a collective net long position Tuesday of 235,207 contracts, up 23,553, or 11.1%, from 211,654 a week earlier.
At the same time, commercial traders had a total net short position of 495,877 contracts, up 35,703, or 7.76%, from 460,174 a week earlier. It was their largest net short position since Aug. 24 when it was 503,017 contracts.
The CFTC said managed money arrived at their new corn position by adding 8,255 long positions, covering 15,298 short positions and putting on 1,924 spread positions. This left them holding 18.8% of total long open interest, 2.5% of total short open interest and 8.4% of total spread open interest.
Commercials got to where they were Tuesday by adding 1,689 long positions and 37,390 short positions, leaving them with 28.4% of total long open interest and 62.8% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $124.70 to $127.09 per cwt, compared with the previous week’s range of $123.44 to $125.75. FOB dressed steers and heifers went for $195.10 to $196.72 per cwt, versus $193.78 to $196.35.
The USDA choice cutout Friday was up $0.83 per cwt at $285.72, while select was up $0.73 at $263.37. The choice/select spread widened to $22.35 from $22.25 with 92 loads of fabricated product and 21 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 $1.20 to $1.32 a bushel over the Dec futures and for southwest Kansas were unchanged at $0.40 over Dec, which settled at $5.68 1/4 a bushel, up $0.05 1/2.
Twelve heifer and one steer contracts were retendered Friday for delivery against Oct at two. All were demanded. None were tendered at zero.
The CME Feeder Cattle Index for the seven days ended Thursday was $155.88 per cwt up $0.92. This compares with Friday’s Nov contract settlement of $156.57 per cwt, down $1.07.