For the second straight week, large commodity index funds, known as managed money, increased their collective net long live cattle futures positions, according to Commodity Futures Trading Commission data.
At the same time, hedgers, known as commercial traders because they deal mostly in the cash market and use the futures market to hedge their cash positions, increased their total net short positions.
The data came from the CFTC’s weekly Commitments of Traders report Friday, which lists aggregate positions as of Tuesday.
FUNDS BOOST CATTLE HOLDINGS
As of Tuesday, managed money had a net long cattle position of 33,072 contracts, up 7,316, or 28.4%, from 25,756 a week earlier. It was their largest net long position since May 3 when it was 35,813 contracts.
Commercial traders had a total net short position Tuesday of 105,610 contracts, up 6,066, or 6.09%, from 99,544 a week earlier. It was their largest net short position since May 3 when it was 114,324 contracts.
The CFTC said managed money arrived at their new cattle position by adding 1,680 long positions, covering 5,636 short positions and unwinding 117 spread positions. This left them with 27.8% of total long open interest, 15.7% of total short open interest and 8.3% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 109 long positions and adding 5,957 short positions, leaving them in charge of 13.7% of total long open interest and 51.9% of total short open interest.
The CME Group said live cattle open interest Tuesday totaled 276,254 contracts, up 2,707, or 0.99%, from 273,547 a week earlier.
CME Group data also showed that the most-active Aug contract rose in value during the week to settle Tuesday at $136.25 per cwt, compared with $134.07 a week earlier.
FUNDS SELL CORN
Tuesday, managed money had a collective net long Chicago corn futures position totaling 241,691 contracts, down 11,549, or 4.56%, from 253,240 a week earlier.
At the same time, commercials’ total net short corn position came to 594,317 contracts, down 27,254, or 4.38%, from 621,571 a week earlier.
The CFTC said managed money came to their new corn position by liquidating 10,354 long positions, adding 1,195 short positions and putting on 3,546 spread positions. This left them in charge of 19.9% of total long open interest, 3.9% of total short open interest and 8.4% of total spread open interest.
Commercials got to where they were by adding 5,471 long positions and 21,783 short positions, leaving them with 24.5% of total long open interest and 63.8% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $139.00 to $147.09 per cwt, compared with the previous week’s range of $135.00 to $144.00. FOB dressed steers, and heifers went for $216.47 to $225.02 per cwt, versus $213.01 to $219.19.
The USDA choice cutout Friday was up $0.32 per cwt at $264.98, while select was up $0.08 at $245.02. The choice/select spread widened to $19.96 from $19.72 with 64 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The USDA reported that basis bids for corn from feeders in the Southern Plains were unchanged at $1.90 to $2.00 a bushel over the Jul futures and for southwest Kansas were steady at even the Jul, which settled at $7.50 1/4 a bushel, up $0.03 1/2.
No live cattle delivery intentions were tendered Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $163.71 per cwt down $1.52. This compares with Friday’s Aug contract settlement of $172.50, down $2.35.