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COT Report: Funds Exit Grains, Build Cattle Positions Ahead of USDA Plantings Report

Author: Nathan Harris, Ag Optimus, Akron, IA Branch

Good Morning!

Friday’s CFTC Commitment of Traders report showed what we believe to be a clear trend:money is flowing out of grains and into cattle. See the table below for a full breakdown.

Image: ADMIS

🌽 Grains: Funds Keep Liquidating Corn & Adding to Bean Shorts

  • Corn: Funds trimmed their net long position to just 107k
  • Soybeans: Net 22k short, with additional shorts in meal and oil

📉 The entire bean complex is now under pressure from managed money.
We believe beans are the sleeper of 2025—and if weather becomes a concern during the growing season, we could see a sharp upside move.

Both corn and soybeans are now in a holding pattern, awaiting one of the year’s most impactful reports:
🗓️ USDA Prospective Plantings.
Expectations: More corn acres, fewer beans.

🐄 Cattle: Funds Keep Buying Into Strength

Managed money continues to build long positions:

  • Week ending March 18th:
    • +7k live cattle → net long 120k
    • +1k feeder cattle → net long 31k

I suspect they added another 10k live and 1k feeders since then, based on open interest growth (+14k in live cattle over the last three sessions).

This appears to be fund buying met by commercial hedging.

⚠️ Friday’s price action could have been a warning sign for bulls, especially with month- and quarter-end approaching—some liquidation may be expected.

But…

🔥 Cattle On Feed data had bulls pounding their chests again:

  • On Feed: 97.8%
  • Placed: 82.2%

Have a great week!

Have questions about your marketing strategy? Call Nathan today! 📞  712-435-7879

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