Managed money, or large commodity investment funds, renewed their search for a collective net long live cattle futures position during the week ended Tuesday, Commodity Futures Trading Commission data showed Friday.
The CFTC’s weekly Commitments of Traders report Friday showed managed money with a net long live cattle futures position of 21,352 contracts on Tuesday, up 9,092, or 72.4%, from 12,260 the previous week. It was their largest collective net long live cattle position since the week ended Tuesday, April 17 when it was 22,656 contracts.
Commercial traders, those who own the cattle at some point in their lives and primarily are hedgers, had a net short position Tuesday of 99,172 contracts, up 976, or 0.99%, from 98,196 the previous Tuesday. It was their largest net short position in more than a year.
The CFTC said managed money arrived at its new long cattle position by adding 3,842 long positions, covering 5,250 short positions and unwinding 958 spread positions. This left them representing 24.3% of total long open interest, 17.8% of total short open interest and 11.6% of total spread open interest.
Commercials got to their new position by liquidating 863 long positions and adding 113, shorts, leaving them in charge of 12.5% of total long open interest and 42.5% of total short open interest.
The CME Group said total live cattle open interest declined during the CFTC week to 331,592 contracts from 335,781 the previous Tuesday. This was a loss of 4,189 contracts, or 1.25%.
CME Group data show that the most-active Aug live cattle futures contract rose to a cycle high of $106.67 per cwt on Monday, June 11, from the previous Tuesday’s close of $104.05 before dipping to Tuesday’s close of $104.30. The contract has since dropped to a low of $100.40 on Friday before closing Friday at $104.77, just 10 points off the high of $104.87.
FUNDS GO SHORT CORN
After liquidating long corn positions for five weeks, managed money managed to get to a collective net short live cattle futures position as of Tuesday. The new position for these investment funds is short 12,238 contracts, compared with being long by a net 78,696 contracts the previous Tuesday. It was their lowest cattle position since the week ended Feb. 6 when it was short by 84,872 contracts.
Meanwhile, commercials had a net short position on Tuesday of 428,538 contracts, down 51,739, or 10.8%, from 480,277 the previous Tuesday.
The CFTC said managed money arrived at its new short corn position by liquidating 14,940 long positions, adding 75,994 shorts and unwinding 442,383 spreads. This left them representing 14.9% of total long open interest, 15.5% of total short open interest and 8.8% of total spread open interest.
Commercials got to their new short position by adding 20,741 long positions and covering 30,998 shorts, leaving them in control of 24.9% of total long open interest and 46.7% of total short open interest.
CATTLE, BEEF RECAP
No fed cattle sold Wednesday on the Livestock Exchange Video Auction, versus sales two weeks previous at $110 per cwt.
Limited cash trade was reported at $180 per cwt on a dressed basis Wednesday, down $4 from last week. Live-basis cash action was seen at $110 to $113, down $2 to $4.
The USDA choice cutout Friday was down $0.49 per cwt at $221.59, while select was up $0.76 at $202.73. The choice/select spread narrowed to $18.86 from $20.11 with 104 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $140.73 per cwt, up $0.03. This compares with Friday’s Aug settlement of $147.97, up $4.30.