Feeder Cattle COT — Week of November 6, 2026
Feeder Cattle — CFTC Commitments of Traders Report (Week Ending November 6, 2026)
Executive summary
The CFTC disaggregated Commitments of Traders report for Feeder Cattle (FC) for the week ending November 6, 2026, revealed a broad contraction in aggregate market participation alongside moderate speculative profit-taking. Total open interest fell sharply by 3,861 contracts (-5.94%) to 61,138.
Managed money clipped its net long position by 597 contracts to +13,597 contracts (21,465 long vs. 7,868 short), pausing the steady speculative accumulation seen through late October. The week was marked by significant liquidation among commercial hedgers and "Other Reportables": Producer/Merchants reduced gross shorts by 1,631 contracts, easing their net short stance to -3,860 contracts, while Swap Dealers expanded net long exposure by 1,027 contracts to +7,930 contracts. Overall market breadth narrowed, with active reporting traders falling from 241 to 224.
Positioning (net, extremes vs recent weeks)
- Managed Money: Net long 13,597 contracts (35.1% of open interest long vs. 12.9% short). This marks a mild pull-back from the previous week's multi-month high of +14,194 contracts (October 30, 2026), but remains well above the late-summer troughs of +7,211 contracts set on September 18, 2026. However, it sits substantially below the spring 2026 peak of +21,951 contracts reached on April 17, 2026.
- Producer/Merchant: Net short -3,860 contracts (5,409 long vs. 9,269 short). This is the smallest commercial net short deficit observed across the historical sample, moving well off the heavy commercial hedging levels seen in February 2026 (when net shorts exceeded -8,600 contracts).
- Swap Dealers: Net long 7,930 contracts (8,324 long vs. 394 short), approaching the upper end of their 52-week band (which crested at +8,126 contracts on August 28, 2026).
- Other Reportables: Heavily net short at -14,530 contracts (1,450 long vs. 15,980 short), reflecting massive structural short exposure among large non-commercial entities.
- Non-Reportables: Small traders hold a net short posture of -3,137 contracts (8,893 long vs. 12,030 short).
Flows and week-over-week changes
| Trader Category | Gross Long Change | Gross Short Change | Spreading Change | Net Change | Current Net Position |
|---|---|---|---|---|---|
| Managed Money | -365 | +232 | +1,079 | -597 | +13,597 |
| Producer/Merchant | -555 | -1,631 | — | +1,076 | -3,860 |
| Swap Dealers | +923 | -104 | +143 | +1,027 | +7,930 |
| Other Reportables | -1,756 | +247 | -3,081 | -2,003 | -14,530 |
| Non-Reportable | -249 | -746 | — | +497 | -3,137 |
Key flow dynamics: - Managed Money Retrenchment: Speculative funds shed 365 long positions and added 232 shorts, while increasing calendar spread holdings by 1,079 contracts to 11,289 contracts (18.5% of total open interest). - Commercial De-risking: Producers covered 1,631 short contracts while reducing longs by 555 contracts, cutting their aggregate market footprint to 14,678 gross contracts (24.0% of OI). - Large Liquidations in Other Reportables: This cohort liquidated 1,756 longs and slashed spreading positions by 3,081 contracts, showing a decisive scale-down in cross-market exposures.
Commercials vs speculators
The divergence between commercials and specs shows signs of cyclical relaxation: - Commercial Hedging Retreat: Feeder cattle producers and commercial feedlots have systematically scaled back net short hedges throughout late summer and autumn. Gross short hedging at 9,269 contracts is now near its lowest level in the entire dataset, a marked decline from over 15,800 short contracts in late February 2026. - Speculative Cushion: While Managed Money net long exposure (+13,597) is healthy, it is not stretched near bullish historical extremes. The ratio of speculative gross longs (21,465) to speculative gross shorts (7,868) stands at approximately 2.73:1, down slightly from 2.86:1 the week prior. - Swap Dealer Absorption: Swap dealers maintain a predominantly long profile (8,324 longs vs. only 394 shorts), acting as liquidity providers and index roll absorbents opposite large commercial and other reportable short hedges.
Open interest and participation
- Aggregate Open Interest: Dropped by 3,861 contracts (-5.94%) w/w to 61,138 contracts, hovering near the lower bound of the annual range (which bottomed around 56,937 in mid-June 2026).
- Trader Participation: Total trader count dropped from 241 to 224:
- Managed money long accounts decreased from 50 to 45, while short accounts fell from 27 to 24.
- Producer/Merchant short accounts dipped from 66 to 62.
- Top-Trader Concentration:
- The 4 largest traders hold 13.7% of the net long open interest and 18.5% of the net short open interest (gross: 13.8% long, 20.9% short).
- The 8 largest traders control 23.6% net long and 25.1% net short (gross: 24.4% long, 30.1% short). Concentration metrics remain modest, indicating balanced distribution across prominent market participants.
Price context
- Data Availability: Daily cash/futures price series data for front-month FC was not provided in this reporting run. Consequently, price-to-positioning correlation, technical support/resistance cross-checks, and momentum divergences cannot be evaluated directly from price quotes.
Risks and watchpoints
- Contracting Market Liquidity: A drop of nearly 6% in open interest in a single week highlights shrinking risk appetite. Reduced liquidity could exacerbate volatility if unexpected physical supply or pasture condition shifts emerge.
- Producer De-hedging: The rapid collapse in gross commercial short positions (now at 9,269 contracts) suggests cattle producers are less aggressive in locking in forward feeder margins at current market levels, which can leave feedlot buyers exposed to sudden basis shifts.
- Managed Money Momentum Vulnerability: While fund positioning is moderate, spec longs still constitute over 35% of total open interest. Any broader macro risk-off wave could prompt managed money to test the 7,868 short backstop, triggering further liquidation toward late-summer support levels (+7,200 net long).