Large commodity investment funds cut their collective net long live cattle futures position during the week ended Tuesday for the second straight week, bringing them to their lowest net long position in almost two months.
The data came from the Commodity Futures Trading Commission in its weekly Commitments of Traders report Friday.
The report said the funds, called managed money, had a net long live cattle position on Tuesday of 54,110 contracts, down 4,209, or 7.22%, from 58,319 the previous Tuesday and the lowest since July 31 when it was 51,461 contracts.
During the same week, cattle hedgers, called commercials or producers, cut their collective net short position by 7,643 contracts, or 5.59%, to 129,006 contracts from 136,649. It was their smallest net short position since the week ended July 31 when it was 127,339 contracts.
The CFTC said managed money arrived at its new net long cattle position by liquidating 2,076 long positions, adding 2,133 short positions and unwinding 958 spread positions. This left them representing 27.5% of total long open interest, 9.6% of total short open interest and 12.1% of total spread open interest.
Commercials got to their new net short cattle position by adding 41 long positions and covering 7,602 short positions, leaving them in control of 10.8% of total long open interest and 53.5% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday was 302,193 contracts, down from 305,686 the week before. This was a decline of 3,493 contracts, or 1.14%.
CME data also showed that the most-active Dec contract moved lower during the week to settle at $113.92 per cwt from $114.40, a dip of $0.48, or 0.42%. It has since moved higher, rocketing to a close of $118.05 on Friday, the highest close since March 7 when it settled at $118.10.
FUNDS ADD TO NET SHORT CORN POSITION
Meanwhile, managed money added to its net short corn futures position by 3,353 contracts, or 4.16%, taking it to 83,892 contracts from 80,539 the previous Tuesday.
At the same time, commercials cut their net short corn position to 241,202 contracts, from 241,691 the previous Tuesday, a decline of 489, or 0.20%.
Managed money arrived at its new short corn position by liquidating 8,043 long positions, covering 4,690 short positions and placing 3,695 new spread positions. This left them representing 15.4% of total long open interest, 20.4% of total short open interest and 10.4% of total spread open interest.
Commercial traders got to their new net short corn position by adding 12,491 long positions and 12,002 short positions, leaving them holding 28.6% of total long open interest and 42.9% of total short open interest.
CME Group data show total corn open interest of 1.677 million contracts, versus 1.655 million the week before.
CATTLE, BEEF RECAP
No fed cattle sold Wednesday on the Livestock Exchange Video Auction, compared with 280 that traded three weeks previous at $109.50 per cwt.
Light cash cattle trading was reported in Nebraska early last week at a steady $107 per cwt on a live basis and $170 dressed. Friday, cattle traded at $111 per cwt live, up $3 to $4, and $172 to mostly $175 dressed, up $4 to $7.
The USDA choice cutout Friday was up $0.23 per cwt at $204.27, while select was off $0.77 at $196.47. The choice/select spread widened to $7.80 from $6.80 with 85 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $152.71 per cwt, up $0.11. This compares with Friday’s Sep settlement of $157.42, up $2.47.