Large commodity investment firms, called managed money, liquidated long live cattle futures positions in the week ended Tuesday, while cattle owners covered short positions aggressively.
The Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday gave the data that showed both categories of traders made opposite moves for the third straight week.
FUNDS SELL CATTLE
Managed money’s new collective net long cattle position Tuesday totaled 33,387 contracts, down 20,935 or 38.5%, from 54,322 a week earlier. It was their largest net long position since July 28 when it was 31,189 contracts.
The cattle owners, called commercial traders, had a new collective net short live cattle position Tuesday of 109,500 contracts, down 15,989, or 12.7%, from 125,489 a week earlier. It was their smallest net short position since July 14 when it was 104,872 contracts.
The CFTC said managed money arrived at their new net long cattle position by liquidating 8,463 long positions, adding 12,472 short positions and unwinding 821 spread positions. This left them holding 24.9% of total long open interest, 12.5% of total short open interest and 10.7% of total spread open interest.
Commercials got to where they were Tuesday by adding 6,638 long positions and covering 9,351 short positions, leaving their position representing 10.9% of total long open interest and 51.6% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 269,100 contracts, down from 292,713 a week earlier, a drop of 23,613, or 8.07%.
The CME Group also said the most-active Dec contract value fell during the week to settle Tuesday at $105.45 per cwt from $111.22.
FUNDS BUY MORE CORN
During the CFTC reporting week, managed money continued to expand their net long live cattle futures position, going to 211,575 contracts from 156,928 a week earlier, a gain of 54,647, or 34.8%. It was their largest net long position in more than a year.
At the same time, commercials expanded their net short position to 466,242 contracts, up 80,961, or 21.0%, from 385,281 a week earlier. It was their largest net short position in more than a year.
The CFTC said managed money arrived at their new long corn position by adding 40,604 long positions, covering 14,043 short positions and unwinding 3,386 spread positions. This left them with 17.7% of total long open interest, 4.7% of total short open interest and 10.0% of total spread open interest.
Commercials got to where they were by adding 13,685 long positions and 94,646 short positions, leaving them in charge of 29.0% of total long open interest and 57.7% of total short open interest.
CATTLE, BEEF RECAP
Fed cattle trading last week was seen at $104 to $106 per cwt on a live basis, down $3 from the previous week. Dressed-basis trading was reported at $165 to $166 per cwt, down $3 to $4.
The USDA choice cutout Friday was down $1.37 per cwt at $207.49, while select was up $0.32 at $191.40. The choice/select spread narrowed to $16.09 from $17.78 with 95 loads of fabricated product and 53 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids from livestock feeding operations in the Southern Plains were unchanged at $1.15 to $1.21 per bushel over the Dec CME futures contract, which settled at $4.19 1/4 a bushel, up $0.03.
There were no delivery notices against the Oct live cattle futures market Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $134.01 per cwt, down $1.52. This compares with Friday’s Oct contract settlement of $133.52 per cwt, down $0.30 and the Nov close of $129.65, down $0.77.