For the second straight week, large commodity investment funds, known as managed money, sold live cattle futures in the week ended Tuesday, as hedgers covered short positions.
The information came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
Managed money’s new collective net long live cattle position Tuesday totaled 54,322 contracts, down 3,007, or 5.25%, from 57,329 a week earlier. It was their lowest net long position since Aug. 11 when it totaled 43,824 contracts.
Meanwhile, those hedgers, known as commercial traders, reduced their collective net short live cattle position to 125,489 contracts Tuesday, down 1,919, or 1.51%, from 127,408 a week earlier. It was their smallest net short positions since Aug. 4 when it was 118,320 contracts.
The CFTC said managed money arrived at their new cattle position by liquidating 917 long positions, adding 2,090 short positions and unwinding 12,544 spread positions. This left their net long cattle position representing 27.4% of total long open interest, 7.7% of total short open interest and 10.8% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 1,943 long positions and covering 3,862 short positions, leaving them in charge of 8.2% of total long open interest and 53.9% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 292,713 contracts, down 10,828, or 3.57%, from 303,541 a week earlier.
CME Group data also showed that the most-active Dec contract declined during the CFTC reporting week to settle Tuesday at $111.22 per cwt, down from $111.95 a week earlier. It has since declined sharply.
FUNDS BUY MORE CORN
During the same week, managed money continued to buy Chicago corn futures, ending Tuesday with 156,928 contracts, up 39,644, or 33.8%, from 117,284 from a week earlier. It was their largest net long position in more than a year.
Commercials, extended their collective net short corn position to its largest in more than a year, ending Tuesday at 385,281 contracts, up 17,745, or 4.83%, from 367,536 a week earlier.
The CFTC said managed money arrived at their new net long position by adding 21,599 long positions, covering 18,045 short positions and unwinding 23,265 spread positions. This left them with 15.9% of total long open interest, 5.8% of total short open interest and 10.7% of total spread open interest.
Commercials got to where they were by adding 12,815 long positions and 30,560 short positions, leaving them with 29.5% of total long open interest and 54.3% of total short open interest.
The CME Group said total long corn open interest Tuesday was 1.550 million contracts, up 36,401, or 2.40%, from 1.514 million a week earlier.
The most-active Dec corn futures contract rose $0.06 ¼ a bushel, or 1.62%, to $3.91 ¼ from $3.85 a week earlier.
CATTLE, BEEF RECAP
Fed cattle trading last week was seen at $107 to $109 per cwt on a live basis, steady with the previous week. Dressed-basis trading was reported at $169 per cwt, up $2 to down $1.
The USDA choice cutout Friday was down $0.45 per cwt at $210.03, while select was off $2.98 at $193.52. The choice/select spread widened to $16.51 from $13.98 with 107 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
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 $140.22 per cwt, down $0.69. This compares with Friday’s Oct contract settlement of $138.10 per cwt, down $0.82.