Funds Keep Selling Cattle

Large commodity investment funds, called Managed Money, continued to reduce their net long live cattle position in the week ended Tuesday while producers kept trimming their collective net short position.

The Commodity Futures Trading Commission said in its weekly Commitments of Traders report Friday that managed money’s new live cattle futures position Tuesday was 22,656 contracts, down from 26,789 a week earlier.  This was the eighth week of declines in their live cattle position and their lowest net long position in more than a year.

During the same week, the net short live cattle futures position of commercial traders, those who produce the cattle, declined to 118,955 contracts from 128,001 the previous Tuesday, a dip of 9,046, or 7.07%, and their lowest net short position in more than a year.

The CFTC said managed money arrived at its new live cattle position by liquidating 2,044 long positions, adding 2,089 short positions and placing 3,865 spread positions.  The moves left them representing 23.8% of total long open interest, 17.3% of total short open interest and 11.4% of total spread open interest.

Commercial traders got to their new position by adding 3,436 long positions and covering 5,610 short positions to leave themselves in control of 12.1% of total long open interest and 46.6% of total short open interest.

The CME Group reported total live cattle open interest as of Tuesday at 344,896 contracts, down 3,749, or 1.08%, from 348,645 the previous week.

CME Group data show the most-active Jun futures contract had a net gain during the week ended Tuesday, settling at $104.90, versus $102.10 the previous Tuesday.

 

FUNDS SLASH CORN HOLDINGS

 

During the same CFTC-reporting week, managed money cut its net long corn position to 126,389 positions, down 43,396, or 25.6%, from 169,785 the previous week.

And commercials cut their net short corn positions by 30,501 contracts, or 5.53%, to 521,302 contracts from 551,803.

The CFTC said managed money arrived at its new corn position by covering 30,291 long positions, adding 13,105 short positions and placing 8,618 new spread positions.  This left them representing 15.8% of total long open interest, 9.0% of total short open interest and 9.4% of total spread open interest.

Commercials, meanwhile, added 5,837 long positions while covering 24,664 short positions to leave them in control of 23.4% of total long open interest and 51.5% of total short open interest.

Total corn open interest as of Tuesday was reported at 1.857 million contracts, down 28,081, or 1.45%, from 1.885 million the previous week.

The most-active Jul corn contract fell during to week to $3.89 ¼ a bushel from $3.97 3/4.  Since then, it has continued to drop, closing at its lowest point in two weeks.

 

CATTLE, BEEF RECAP

 

On the Livestock Exchange Video Auction Wednesday, 161 head sold for 1- through 9-day delivery at $122 per cwt, and 338 sold for 1- through 17-day delivery at $120.

Last Wednesday, cattle sold at $114 to $118 per cwt.

Cash trade got started Thursday at $121 to $122 per cwt on a live basis and moved to $122 to $124 by Friday.  Dressed-basis trade was noted at $192 to $195, up $2 to $5.

The USDA choice cutout Friday was up $0.64 per cwt at $211.98, while select was up $1.65 at $200.13.  The choice/select spread narrowed to $11.85 from $12.86 with 111 loads of fabricated product sold into the spot market.

The CME Feeder Cattle index for the seven days ended Thursday, was $136.56 per cwt, down $0.56.  This compares with Friday’s Apr settlement of $137.30, up $0.07 and May’s close of $139.32, up $0.90.