Feeder Cattle - Commitments of Traders Brief: Week Ending June 12, 2026

Executive summary

This report covers positioning in Feeder Cattle futures for the week ending June 12, 2026. The primary theme is one of disengagement and risk reduction, with overall market participation falling to the lowest levels seen in the provided historical data. Managed Money, while holding a modestly reduced net long position, saw significant two-way liquidation as both longs and shorts closed positions. Commercials remain net short, as expected, but their hedging exposure is also significantly reduced compared to earlier in the year. The declining Open Interest suggests capital is flowing out of the Feeder Cattle market, potentially signaling a lack of directional conviction among major participants.

Positioning

• Managed Money (Funds): Net long position was little changed, moving to +11,392 contracts from +11,299 the prior week. However, this is significantly below the peak net long of +20,521 contracts seen on May 8, indicating a substantial reduction in bullish sentiment over the past month.
• Producer/Merchant (Commercials): Net short position decreased slightly to -2,839 contracts from -3,118 contracts in the prior week. This is a very light hedge compared to levels above -7,000 contracts seen in late January.
• Swap Dealers: Increased their net long position to +5,148 contracts, up from +4,319. They continue to be a significant holder of net length in this market.

Flows and week-over-week changes

The most telling action this week was the significant gross position changes, despite a muted net change for some categories.

• Managed Money: Funds engaged in substantial risk reduction. They liquidated -1,204 long contracts while simultaneously covering -1,297 short contracts. This indicates a closing of positions on both sides of the book rather than a strong directional bet.
• Producer/Merchant: Commercials made minor adjustments, adding 320 long contracts and 41 short contracts, leading to a small reduction in their net short hedge.
• Swap Dealers: This category was a notable net buyer, adding +770 long contracts while trimming -59 short contracts.
• Non-reportable (Small Speculators): Small traders were notable sellers, liquidating -1,243 long contracts and -520 short contracts, reducing their net short position.

Commercials vs Speculators

The classic positioning dynamic persists, with speculators providing liquidity for commercial hedgers. - Speculative Side: The speculative long interest is primarily held by Managed Money (+11,392 net long) and Swap Dealers (+5,148 net long). Combined, these large speculators hold a significant net long position. - Commercial Side: Producer/Merchants hold a net short position of -2,839 contracts, using the futures market to hedge against a potential decline in the price of physical cattle. Their current hedging activity is very light compared to historical levels provided, suggesting either a smaller crop to hedge or a less bearish outlook on prices.

Open interest and participation

• Open Interest: Total open interest fell by -1,111 contracts to 56,937. This is the lowest level of open interest in the entire historical dataset provided, which stretches back to December 2025. This steady decline from a peak of over 79,000 contracts in February highlights a significant exit of capital and participation from the market.
• Trader Counts: The total number of reportable traders stands at 230, a slight increase from last week's 224 but well below the ~290 levels seen earlier in the year. Managed Money accounts for 48 long traders and 19 short traders.
• Concentration: The market shows moderate concentration. The largest 4 traders hold 11.5% of the net long position and 14.9% of the net short position.

Price context

Price series data was not provided for this reporting period. Therefore, a direct correlation between the week's positioning changes and market price action cannot be established.

Risks and watchpoints

• Low Participation: The historically low Open Interest is a major watchpoint. Thin markets can be susceptible to exaggerated price swings on relatively low volume or new inflows of capital. The current environment suggests trader apathy, but this could change quickly.
• Managed Money Capitulation? The sharp reduction in the Managed Money net long position from its May peak has been a key driver. The current pause, characterized by two-way liquidation, bears watching. A resumption of long liquidation could pressure the market, while any sign of new buying could have an outsized impact given the reduced market depth.
• Light Commercial Hedging: The very low level of producer short hedging is unusual. This could signal a fundamental belief that downside price risk is limited. Any increase in producer selling could be a bearish signal, suggesting they are becoming more concerned about future prices.