Large commodity index funds, known as managed money, had their largest collective net long position in at least three years Tuesday as hedgers also advanced their total net short position.
The data came from the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission with data as of the previous Tuesday.
FUNDS BUY MORE CATTLE
Tuesday, managed money had a collective net long live cattle position of 149,725 contracts, up 5,239, or 3.63%, from 144,486 a week earlier.
At the same time, hedgers, or commercial traders, had a total net short live cattle position of 151,161 contracts, up 2,305, or 1.55%, from 148,856 a week earlier.
The CFTC said managed money arrived at their new live cattle position by adding 6,797 long positions, 1,558 short positions and unwinding 11,355 spread positions. This left them in control of 43.6% of total long open interest, 3.2% of total short open interest and 10.4% of total spread open interest.
Commercial traders reached their new live cattle position by adding 719 long positions and 3,024 short positions, leaving them holding 9.7% of total long open interest and 50.6% of total short open interest.
CFTC data also revealed that total live cattle open interest Tuesday was 370,032 contracts, down 5,127, or 1.37%, from 375,159 a week earlier.
CME Group data showed that the most-active Apr contract rose in value during the CFTC-reporting week to settle at $198.15 per cwt after setting a contract high the previous Friday at $199.70. The new close was up from $197.77 the previous Tuesday.
FUNDS ALSO BUY CORN
Tuesday, managed money had a collective net long Chicago corn position of 292,163 contracts, up 48,448, or 19.9%, from 243,715 a week earlier, their largest in more than two years.
Meanwhile, commercials had a total net short corn position of 598,197 contracts, up 49,965, or 9.11%, from 548,232 a week earlier, also their largest in two years.
The CFTC said managed money arrived at their new position by adding 36,561 contracts, covering 11,887 short positions and putting on 19,695 spread positions. This left them with 21.2% of total long open interest, 5.3% of total short open interest and 14.9% of total spread open interest.
Commercials reached their new corn position by adding 47,484 long positions and 97,449 short positions, leaving them with 22.8% of total long open interest and 55.3% of total short open interest.
Total corn open interest Tuesday was 1.839 million contracts, up from 1.683 million a week earlier.
The most-active Mar contract rose in the CFTC-reporting week to settle at $4.74 ½ a bushel, versus, $4.58 a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $199.88 per cwt to $208.09, compared with the previous week’s range of $197.00 to $201.40 per cwt. FOB dressed steers, and heifers went for $312.04 per cwt to $319.72, compared with $304.49 to $315.25.
The USDA choice cutout Friday was up $0.28 per cwt at $333.69 while select was up $0.45 at $319.82. The choice/select spread narrowed to $13.86 from $14.03 with 101 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $352.96 per cwt, and 50% beef was $115.48.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.20 to $1.35 a bushel over the Mar corn contract, which settled at $4.84 1/4, up $0.09 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $277.06 per cwt, down $1.25. This compares with Friday’s Jan contract settlement of $273.50, up $0.05.