After 14 straight weeks of net long position gains, managed money cut their collective live cattle position in the week ended Tuesday, according to data from the Commodity Futures Trading Commission.
The data came from the CFTC’s weekly Commitments of Traders report Friday and said the net long live cattle position of managed money, a proxy for large commodity investment funds, was trimmed 190 contracts, or 0.15%, to 128,973 contracts from 129,163 the previous week, which was their largest net long position in more than a year.
At the same time, the net short position of commercial traders, those who own the cattle and generally are hedgers, expanded to 201,802 contracts from 201,734 the week before. This was a gain of 68 contracts, or 0.03%, and was their largest net short position in more than a year.
The CFTC said managed money arrived at its new net long live cattle position by adding 898 long positions, 1,088 short positions and 3,211 spread positions. This left their position representing 34.4% of total long open interest, 4.4% of total short open interest and 14.3% of total spread open interest.
Commercial traders got to their new net short live cattle position by liquidating 1,897 long positions and covering 1,829 short positions, leaving them in charge of 6.0% of total long open interest and 52.9% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday was 431,696 contracts, up 28,257, or 7.00%, from 403,439 the previous week.
CME Group data also showed that the most-active Apr futures contract fell during the week to settle Tuesday at $126.65 per cwt, compared with the settlement on the previous Tuesday of $128.82. The contract has since regained these losses after a severe winter storm in the Plains.
FUNDS EXPAND SHORT CORN POSITION
During the same CFTC week, managed money expanded its net short CBOT corn position to 282,981 contracts from 192,847 the previous Tuesday, a gain of 90,134, or 46.7%. It was their largest net short position in more than a year.
At the same time, commercial traders trimmed their net short corn position to its smallest in more than a year. Their new position was short by 77,301 contracts, down from 127,702 the week before.
The CFTC said managed money arrived at its new short corn position by liquidating 10,646 long positions, adding 79,488 short positions and putting on 20,777 new spread positions. This left them in control of 11.4% of total long open interest, 27.5% of total short open interest and 14.0% of total spread open interest.
Commercial traders got to their new short corn position by adding 29,251 long positions and covering 21,150 short positions. This left them holding 28.4% of total long open interest and 32.8% of total short open interest.
Total corn open interest rose to 1.761 million contracts from 1.663 million, a gain of 97,287, or 5.85%.
CATTLE, BEEF RECAP
Cash cattle trade took place last week at $125 to $128.50 per cwt on a live basis, mostly $126 to $128, steady to down $2 from the previous week, and at $202 to $206 dressed, mostly $203 to $204, down $1.
The USDA choice cutout Friday was down $0.71 per cwt at $226.99, while select was down $1.42 at $217.34. The choice/select spread widened to $9.65 from $8.94 with 48 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $137.65 per cwt, down $0.74. This compares with Friday’s Mar contract settlement of $141.32, up $0.22.