Feeder Cattle COT Report for the week ending February 6, 2026

Executive summary

This report covers the Feeder Cattle futures market, where positioning shifts suggest a slight reduction in bullish conviction among speculators against a backdrop of intensifying producer hedging. Managed Money trimmed their net long position from a multi-week high, primarily through long liquidation. Concurrently, Producer/Merchants (Commercials) expanded their net short position to the largest level in the provided six-week history, indicating aggressive hedging activity. Open interest continued its upward trend, rising to 79,277 contracts, suggesting growing market participation even as directional views modestly diverged. The lack of accompanying price data prevents a direct correlation with market performance during the week.

Positioning

• Managed Money: The net long position for this speculative cohort stands at +17,925 contracts (25,545 long vs. 7,620 short). This is a decrease from the prior week's +18,865 contracts, which was the highest net long level in the provided six-week period.
• Producer/Merchant (Commercials): This group is significantly net short at -8,662 contracts (6,939 long vs. 15,601 short). This represents the largest net short position in the six-week data series, deepening from -7,347 contracts last week.
• Swap Dealers: Swap Dealers hold a net long position of +4,396 contracts. This is a reduction from prior weeks and the smallest net long held by this category in the provided data.

Flows and week-over-week changes

Key changes for the week ending February 6, 2026, reveal a risk-off tone from speculators and increased hedging from commercials. - Managed Money: Reduced their net long position by 940 contracts. This was composed of liquidating 656 long contracts while adding 284 new short positions, a bearish combination. A significant increase in spreading activity was also noted (+1,718 contracts). - Producer/Merchant: Increased their net short position by a notable 1,315 contracts. This was driven by a reduction in their long positions (-919 contracts) and an increase in short hedging (+396 contracts). - Other Reportables: This category provided a significant counter-flow by covering a large number of shorts. Their short positions decreased by 2,706 contracts, which likely provided buying support during the reporting period. - Swap Dealers: Decreased their net long exposure, shedding 438 long contracts.

Commercials vs speculators

The classic divergence between commercial and speculative interests is prominent and growing. - Commercials (Producers/Merchants) are positioned defensively, with their net short position at a multi-week extreme (-8,662 contracts). This suggests that producers view current price levels as an attractive opportunity to hedge future production and lock in prices. - Speculators (Managed Money) remain the primary holders of the net long position (+17,925 contracts), expressing a bullish view on the market. However, this week's reduction in their long exposure marks the first sign of profit-taking or wavering conviction after a steady build-up in previous weeks. - The market is currently defined by this tension: strong speculative length facing increasingly heavy commercial selling.

Open interest and participation

• Open Interest (OI): Total OI rose by a modest 496 contracts to 79,277. This continues a steady upward trend from 66,071 contracts six weeks ago, signaling robust and growing engagement in the Feeder Cattle market.
• Trader Participation: The number of long Managed Money traders (53) continues to significantly outnumber the shorts (21). Conversely, short Producer/Merchant traders (94) are nearly double the number of longs (49), reinforcing the hedging dynamic.
• Concentration: Market concentration remains moderate. The four largest traders account for 9.2% of the gross long side and 12.2% of the gross short side.

Price context

No daily price data was provided for the reporting period. Therefore, a direct correlation between the noted positioning changes and underlying price action cannot be established from the available data. The reduction in net length from Managed Money could suggest price was stalling or showing signs of weakness, but this cannot be confirmed.

Risks and watchpoints

• Elevated Speculative Length: While slightly reduced this week, the Managed Money net long position remains substantial. This leaves the market vulnerable to further long liquidation, which could accelerate price declines if sentiment shifts.
• Aggressive Commercial Hedging: The record (for this data set) net short position held by Producers is a significant headwind for any further price rallies. It indicates a well-supplied commercial seller at these levels.
• "Other Reportables" Short Covering: The large reduction in shorts from the 'Other Reportables' category was a key feature this week. It will be important to watch if this was a one-time event or the start of a trend, as their buying has helped absorb some of the selling from other categories.