Managed money, a term for large commodity investment firms, lowered their total net long live cattle futures position during the week ended Tuesday, the Commodity Futures Trading Commission said Friday in its weekly Commitments of Traders report.
Cattle hedgers, called commercial traders, are those who own, or will own, the cattle at some point in their lives. They took their collective net short live cattle position lower during the CFTC reporting week.
FUNDS CUT LONG CATTLE MARKET STANCE
Managed money’s new net long live cattle position Tuesday totaled 47,440 contracts, down 6,717, or 12.4%, from 54,157 a week earlier. It was their smallest net long position since May 4 when it was 44,441 contracts.
Commercials had a collective net short live cattle position of 140,816 contracts Tuesday, down 8,314, or 5.58%, from 149,130 a week earlier. It was their smallest net short position since May 4 when it was 137,815 contracts.
The CFTC said managed money arrived at their new net long position by liquidating 3,272 long positions, adding 3,445 short positions and unwinding 2,914 spread positions. This left their position representing 27.8% of total long open interest, 12.4% of total short open interest and 10.2% of total spread open interest.
Commercials got to their new short position by adding 3,107 long positions and covering 5,207 short positions, leaving them with 8.6% of total long open interest and 54.4% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 307,484 contracts, down 1,386, or 0.45%, from 308,870 a week earlier.
CME data also showed that the most-active Aug cattle contract fell during the CFTC week to settle Tuesday at $116.60 per cwt from $120.10 a week earlier. However, Tuesday was when news broke of the cyberattack on JBS SA. Friday’s settlement was $118.60 per cwt.
FUNDS BOOST NET LONG CORN POSITION
Managed money’s new net long live cattle position Tuesday was 290,100 contracts, up 21,349, or 7.94%, from 268,751 a week earlier.
Commercials’ new net short position Tuesday totaled 666,545 contracts, up 26,311, or 4.11%, from 640,234 a week earlier.
The CFTC said managed money arrived at their new net long corn position by adding 8,025 long positions, covering 13,324 short positions and putting on 6,537 spread positions. This left them holding 18.2% of total long open interest, 1.4% of total short open interest and 10.0% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 11,261 long positions and adding 15,050 short positions, leaving them with 29.3% of total long open interest and 67.7% of total short open interest.
CATTLE, BEEF RECAP
Fed cattle traded last week at $119.50 to $120 per cwt on a live basis, steady to up $1.50 from the previous week. Dressed-basis trading was at $190 to $191 per cwt, steady to up $2.
The USDA choice cutout Friday was down $1.57 per cwt at $338.98, while select was off $1.43 at $311.73. The choice/select spread narrowed to $27.25 from $27.39 with 75 loads of fabricated product and 22 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.12 to $1.19 a bushel over the Jul futures and for southwest Kansas were unchanged at $0.70 over Jul, which settled at $6.82 ¾ a bushel, up $0.20 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $137.50 per cwt up $0.85. This compares with Friday’s Aug contract settlement of $149.92 per cwt, down $3.02.