Large investment funds, called managed money, continued to liquidate live cattle futures contracts in the week ended Tuesday, while commercial traders covered more short positions.
That information came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
The report showed managed money’s new net long live cattle futures position was 21,160 contracts, down 4,570, or 17.8%, from 25,730 the previous week. It was the third straight week of declines.
The CFTC also said commercials, those who actually handle the cattle, had a net short position of 60,369 contracts, down 3,204, or 5.04%, from 63,573 the previous week. It was the second week of declines.
The CFTC said managed money arrived at its new position by liquidating 234 long positions and adding 4,336 short positions and unwinding 1,865 spreads. This left them representing 29.0% of total long open interest and 21.2% of total short open interest.
Commercials got to where they were by adding 2,566 long positions and covering 638 short positions, leaving them in control of 14.7% of total long open interest and 37.2% of total short open interest.
The CME Group said total live cattle open interest during the week rose to 268,465 contracts from 263,225, a gain of 5,240, or 1.99%.
Futures prices for the most-active Dec contract set a new contract low during the CFTC week at $96.10 per cwt on Thursday, which was tied on Friday. The contract bounced from there to close at $99.25 on Tuesday, up from the previous Tuesday’s close of $99.10.
FUNDS, COMMERCIALS WIDEN CORN POSITION GAP
Managed money and commercials widened the gap in their net positions in corn futures during the week ended Tuesday, with funds getting less short and commercials continuing to sell.
Managed money’s new net short corn position was 51,986 contracts, down 69,928, or 42.6%, from 121,914 the previous week. It was the third straight decline.
Commercial traders’ net short corn positions grew for the third straight week to 249,247 contracts from 202,213 the previous week, an increase of 47,034, or 23.3%.
The CFTC said managed money got to its new net short corn position by adding 23,538 long positions and covering 46,390 shorts while unwinding 11,818 spreads. This left them representing 15.5% of total long open interest and 19.4% of total short open interest.
Commercials arrived at their new corn position by liquidating 5,672 long positions and adding 41,362 short positions, leaving them in control of 23.6% of total long open interest and 42.5% of total short open interest.
Total open interest increased to 1.317 million contracts from 1.306 million, a gain of 10,198, or 0.78%.
During the week, the most-active Dec contract rose to close at $3.53 ¾ a bushel from $3.45 1/2. Since then, the contract has traded sideways to slightly lower
CASH CATTLE MARKETS QUIET
Cash cattle markets last week were lightly traded at $98 to $98.50 per cwt on a live basis and at $154 dressed, compared with the previous week’s $98 live and $152 to $156 dressed. Many sellers clung to their asking prices around $102 on a live basis and passed offers at $98 from packer buyers.
The USDA’s choice cutout Friday was $1.89 per cwt higher at $179.78, while select was off $1.01 at $166.73. The choice/select spread widened to $13.05 from $10.15 with 104 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $120.66 per cwt, up $0.69. This compares with Friday’s Oct settlement of $121.87, up $0.12.