Large investment funds, called managed money, increased their net long live cattle futures position during the week ended Tuesday as commercial traders extended their net short position, said the Commodity Futures Trading Commission.
The CFTC revealed the numbers in its weekly Commitments of Traders report Friday and said managed money had a net long cattle position of 122,957 contracts, up 3,163, or 2.64%, from 119,794 the previous week.
Commercial traders, those who theoretically could make or take delivery of a futures contract, extended their net short cattle position by 2,277 contracts, or 1.11%, to 206,751 contracts from 204,474 to their largest net short position in more than a year.
Swap dealers, those who facilitate over-the-counter and cash trades, reduced their net long cattle position during the CFTC week to 100,512 from 102,193, a decline of 1,681, or 1.64%.
The CFTC said managed money arrived at its new cattle position by liquidating 893 long positions, covering 4,056 short positions and taking on 758 new spread positions. This left them representing 33.6% of total long open interest, 4.6% of total short open interest and 10.3% of total spread open interest.
Commercial traders got to where they were by liquidating 133 long positions and adding 2,144 short positions, to leave them in control of 6.5% of total long open interest and 56.1% of total short open interest.
Swap dealers liquidated 1,747 long positions, covered 66 short positions and took on 1,467 new spread positions to leave them with 24.8% of total long open interest, 0.7% of total short open interest and 0.8% of total spread open interest.
The CME Group said total live cattle open interest declined 3,861 contracts, or 0.92%, during the week to 416,293 contracts from 420,154.
The most-active Aug futures contract declined $2.00 per cwt, or 1.66%, during the week to settle at $118.25 on Tuesday from $120.25 the previous week, CME Group data show.
FUNDS LESS SHORT CORN
Meanwhile, managed money got less short during the latest CFTC reporting week to become net short by 200,695 contracts, down 3,281, or 1.61%, from 203,976 the previous week, the CFTC said.
Commercial traders edged their net short corn position higher during the week by 90 contracts, or 0.08%, to 108,608 contracts from 108,518.
Managed money arrived at its new corn position by adding 17,135 long positions and 13,854 short positions while unwinding 2,807 spread positions. This left them representing 15.1% of total long open interest, 29.8% of total short open interest and 6.2% of total spread open interest.
Commercials got to their new position by liquidating 5,463 long positions and covering 5,373 short positions to leave them in control of 24.9% of total long open interest and 32.8% of total short open interest.
CASH CATTLE QUIET
After cattle traded on the livestock exchange Wednesday at an average of $134.81 per cwt on a live basis, down $3.59 from $138.40 a week earlier, cash cattle began to trade at $133.75 to $135.75 live and $215.00 dressed.
However, much more trade occurred on Thursday and Friday at $133 to $134 live, with some up to $135.50, down $4 to $5 from mostly $138 last week. Some dressed-basis action also occurred at $212 to $213.
The USDA’s choice cutout Friday was down $0.07 per cwt at $247.14, while select was off $0.24 at $221.42. The choice/select spread widened to $25.72 from $25.55 with 77 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $143.86 per cwt, up $1.41. This compares with Friday’s May settlement at $143.35, up $1.07.