Managed money, those large commodity investment funds, for the fourth straight week liquidated long futures positions and as of Tuesday were at their lowest point in 3 ½ months.
At the same time, commercial traders, those who own, or will own, the cattle at some point in their lives, cut their collective net short live cattle positions and Tuesday were at their lowest short positions in 3 ½ months.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report published on Friday for the week ended the previous Tuesday.
FUNDS LESS LONG LIVE CATTLER
As of Tuesday, managed money’s new net long live cattle position stood at 44,441 contracts, down 6,214, or 12.3%, from 50,655 a week earlier. It was their lowest long position since Jan. 19 when it was 42,388 contracts.
At the same time, commercials’ new collective net short position Tuesday was 137,815 contracts, down from 144,481 a week earlier. It was their lowest net short position since Jan. 19 when it was 121,133 contracts.
The CFTC said managed money arrived at their new net long cattle position by adding 664 long positions, 6,878 short positions and unwinding 3,241 spread positions. This left their position in charge of 26.7% of total long open interest, 12.8% of total short open interest and 11.3% of total spread open interest.
Commercials got to where they were by liquidating 178 long positions and covering 6,844 short positions, leaving them representing 9.1% of total long open interest and 52.2% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 319,895 contracts, down from 325,889 a week earlier, a decline of 5,994, or 1.84%.
CME Group data also showed that the most-active Jun contract fell during the CFTC reporting week to settle Tuesday at $113.02 per cwt, compared with $115.85 a week earlier.
FUNDS LESS LONG CORN
During the week ended Tuesday, managed money continued to get less long Chicago corn futures, ending Tuesday with 355,499 contracts, down 6,739, or 1.86%, from 362,238.
As of Tuesday, commercials held at net short position of 760,358 contracts, up 6,049, or 0.80%, from 754,309 a week earlier.
The CFTC said managed money arrived at their new long cattle position by liquidating 7,333 long position s, covering 594 short positions and unwinding 2,827 spread positions. This left them with 22.8% of total long open interest, 1.5% of total short open interest and 9.1% of spread open interest.
The CME Group said corn open interest on Tuesday totaled 1.670 million contracts, down 28,263, or 1.66%, from 1.699 million a week earlier.
The most-active Jul contract rose to $6.96 ¾ a bushel from $6.54 ½.
CATTLE, BEEF RECAP
Fed cattle traded last week at $117 to $119 per cwt on a live basis, down $1 from the previous week. Dressed-basis trading was at $188 to $190 per cwt, down $1 to $3.
The USDA choice cutout Friday was down $0.49 per cwt at $305.88, while select was up $0.91 at $290.27. The choice/select spread narrowed to $15.61 from $17.01 with 46 loads of fabricated product and 17 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.04 to $1.18 a bushel over the May CBOT futures contract, which settled at $7.72 3/4 a bushel, up $0.13 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $130.83 per cwt down $0.73. This compares with Friday’s May contract settlement of $131.72 per cwt, up $1.25.