Funds Cut Long Live Cattle Position

Managed money, a moniker for large commodity investment firms, cut their collective net long live cattle futures positions during the week ended Tuesday, even though hedgers extended their net short positions.

The Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday showed that managed money’s new net long live cattle position was 19,968 contracts, down 1,487, or 6.93%, from 21,455 a week earlier.

At the same time, hedgers, those who own the cattle and are known as commercial traders, extended their collective net short cattle position to 104,872 contracts, down 737, or 0.71%, from 104,135 a week earlier.  It is uncommon for managed money and commercial traders to take on collective net shorter positions at the same time.

The CFTC said managed money arrived at their new net long cattle position by liquidating 2,051 long positions, covering 564 short positions and putting on 652 new spread positions.  This left their net position representing 17.9% of total long open interest, 10.4% of total short open interest and 13.6% of total spread open interest.

Commercial traders reached their new short cattle position by liquidating 1,331 long positions and covering 594 short positions, leaving them in contro0l of 11.9% of total long open interest and 51.5% of total short open interest.

The CME Group said total live cattle open interest Tuesday was 264,847 contracts, down 6,562, or 2.42%, from 271,409 a week earlier.

CME data also showed that the most-active Oct live cattle contract declined over the CFTC reporting week to settle at $102.90, down $0.80, or 0.77%, from $103.70.

 

MANAGED MONEY SELLS CORN

 

Meanwhile, managed money sold Chicago corn futures to take on an overall shorter position.  The new position for these traders was net short by 148,786 contracts, down 1,552, or 1.03%, from 150,338 a week earlier.

Commercial traders’ new net short corn position on Tuesday was 67,638 contracts, up 8,442, or 14.3%, from 59,196 a week earlier.  It was their largest net short position since April 21 when it was short by 73,593 contracts.

The CFTC said managed money arrived at their new net short corn position by liquidating 749 long positions, covering 2,301 short positions and putting on 10,365 new spread positions.  This left they net short position representing 10.4% of total long open interest, 20.3% of total short open interest and 12.8% of total spread open interest.

The CME Group said total corn open interest as of Tuesday was 1.499 million contracts, up from 1.491 million a week earlier.  This was a gain of 7,700 contracts, or 0.52%.

CME Group data also showed that the most-active Dec corn contract fell during the CFTC reporting week to settle Tuesday at $3.33 ¾ a bushel, down from $3.52 1/2.  The contract since has made a swing low of $3.30 ½ a bushel on Wednesday, turning higher on Thursday and Friday.

 

CATTLE, BEEF RECAP

 

Fed cattle sold last week at $94 to $100 per cwt on a live basis, mostly $95 to $98, steady to up $3 from the previous week.  Dressed-basis trading was reported at $157 to $160 per cwt, steady to up $2.

The USDA choice cutout Friday was down $0.33 per cwt at $200.47, while select was down $0.99 at $190.31.  The choice/select spread widened to $10.16 from $9.50 with 91 loads of fabricated product sold into the spot market.

The CME Feeder Cattle index for the seven days ended Thursday was $136.61 per cwt, up $0.74.  This compares with Friday’s Aug contract settlement of $142.70, up $0.10.