Investment funds cut their net long position in live cattle futures during the week ended Tuesday as commercial traders continued to advance their collective net short position.
The Commodity Futures Trading Commission, in its weekly Commitments of Traders report Friday said that during the week ended Tuesday that managed money, a proxy for those large investment funds, reduced their collective net long live cattle position by 8,071 contracts, or 6.06%, to 125,109 from 133,180 the previous week.
The CFTC also said, commercial traders, those who handle or own the cattle at some point in their lives, raised their net short futures position to 205,655 contracts from 204,074 the previous week, a gain of only 1,581, or 0.77%.
At the same time, swap dealers, those who facilitate cash or over-the-counter trades, raised their net long position by 2,760 contracts, or 2.77%, to 102,267 from 99,507.
The CFTC said managed money arrived at its new cattle position by liquidating 551 long positions and adding 7,520 short positions and 6,966 spread positions. This left them representing 33.8% of total long open interest, 4.8% of total short open interest and 9.7% of total spread open interest.
Commercial traders arrived at their new cattle position by adding 3,511 long positions against 5,092 short positions, leaving them in control of 5.9% of total long open interest and 53.5% of total short open interest.
Swap dealers added 2,537 long positions and 509 spread positions while covering 223 short positions during the week. This left them holding 24.5% of total long open interest, 0.8% of total short open interest and 0.5% of total spread open interest.
The CME Group reported that total live cattle open interest during the CFTC reporting week rose to 432,123 contracts from 414,510, a gain of 17,613, or 4.25%.
Prices for the most-active Jun live cattle contract rose $11.23 per cwt, or 9.70%, during the CFTC week to close Tuesday at $127.05 per cwt from $115.82.
FUNDS TRIM SHORT CORN POSITION
Meanwhile, managed money cut its net short corn futures position by 9,757 contracts, or 5.41%, to 170,603 from 180,360 the previous week.
At the same time, commercial traders added 3,935 contracts, or 3.11%, to their net short position, taking them to 130,383 from 126,448.
Managed money arrived at their new net short corn position by liquidating 2,090 positions, covering 11,847 short positions and unwinding 26,852 spreads. This left them representing 14.7% of total long open interest, 27.5% of total short open interest and 6.1% of total spread open interest.
Commercial traders cut 54,934 contracts from their total position while covering 50,999, leaving them in control of 25.2% of total long open interest and 35.0% of total short open interest.
Total open interest fell 106,633 contracts, or 7.44%, during the week to 1.327 million contracts from 1.434 million.
CASH CATTLE QUIET
After trading on the livestock exchange Wednesday at an average of $140.15 per cwt on a live basis, up $9.01 from $131.14 a week earlier, fed cattle began to trade in the Plains.
Cash cattle then traded at $140 to $142 per cwt live, but the volume came at $145 to $147, up $9 to $10. Dressed-basis trade also was noted at $230 to $231, up $12 to $15.
The USDA’s choice cutout Friday was up $3.29 per cwt at $238.87, while select was up $2.73 at $219.57. The choice/select spread widened to $19.30 from $18.74 with 50 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $145.75 per cwt, up $0.36. This compares with Friday’s May settlement at $143.77, down $4.50.