Large commodity funds, called managed money, continued to divest themselves of nearby live cattle positions during the week ended Tuesday, June 28, taking them to the lowest net long position in almost five months.
The Commodity Futures Trading Commission, in its weekly Commitments Of Traders report, also said commercial traders, those who actually handle the cattle, reduced their net short positions to the lowest they have been in four months.
During the week, managed money reduced its net long live cattle position to 14,214 from 17,132, a decline of 2,918, or 17.0%. The next lowest net long position for these traders occurred the week ended Feb. 16 when it was 11,437 contracts.
Commercial traders reduced their net short positions by 2,958 contracts, or 4.62%, during the week to 61,048 from 64,006. This is their lowest since the week ended March 1 when it was 60,462.
Managed money arrived at its new live cattle position by liquidating 1,562 long positions and adding 1,356 short positions while putting on 973 spreads. This left them representing 22.8% of total long open interest and 17.0% of total short open interest.
Commercials got to where they were by adding 814 long positions and covering 2,144 shorts to leave them in control of 17.0% of total long open interest and 42.2% of total short open interest.
Total live cattle open interest fell 1,927 contracts, or 0.79%, to 242,478 from 244,405, according to the CME Group.
Also during the latest week, the most-active Aug futures contract tested the June 20, contract low of $109.57 with a low of $109.62 on Tuesday, June 21. From there, it rose to a high on Thursday of $114.22 before settling on Tuesday at $112.72.
FUNDS PURGE CORN
Meanwhile, managed money continued to purge its portfolios of corn, sending futures prices tumbling.
For the latest week, the CFTC reported managed money held a net long corn position of 168,232 contracts, down 48,139, or 22.2%, from 216,371. This is the lowest net long position for these traders since the week ended May 31 when it was 142,290.
During the latest CFTC week, commercial traders cut their net short positions to 476,884 contracts from 511,216, a decline of 34,332, or 6.72%. This is their smallest net short position since the week ended May 31 when it was 448,612.
Managed money got to its new position by liquidating 60,675 long positions and covering 12,536 shorts while unwinding 6,086 spreads. This left them representing 19.3% of total long open interest and 6.7% of total short open interest.
Commercials got to their new position by liquidating 26,695 long positions and covering 62,127 shorts, leaving them in control of 21.4% of total long open interest and 57.1% of total short open interest.
The CME Group said total corn open interest during the latest week fell 146,744 contracts, or 9.91%, to 1.334 million from 1.481 million.
The most-active Dec contract fell to $3.94 ¼ a bushel from $4.08 ¾ in a free-fall from the contract high of $4.48 ½ set June 15.
CASH CATTLE UP $6
Cash cattle markets last week were up about $6 per cwt at mostly $122 on a live basis within a range of $116 to $123. In dressed markets, prices were up mostly $10 at $195 with some earlier in the week at $185.
The USDA’s choice cutout Friday was $0.29 per cwt higher at $208.73, while select was off $1.28 at $193.73. The choice/select spread widened to $15.00 from $13.43 with 102 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $143.66 per cwt, down $0.15. This compares with the Aug settlement Friday of $142.45, down $1.85.