Large commodity investment funds, collectively called managed money by many, trimmed their combined net long live cattle futures position in the week ended Tuesday, said the Commodity Futures Trading Commission Friday in its weekly Commitments of Traders report.
Managed money’s new net long cattle position Tuesday was 58,139 contracts, down 881, or 1.49%, from 59,020 one week earlier.
At the same time, commercial traders, those who own the cattle at some point and primarily are hedgers, decreased their collective net short live cattle futures position by 1,363 contracts, or 0.99%, to 136,649 contracts from 138,012 the previous week.
The CFTC said managed money arrived at its new net long cattle position by adding 1,390 long positions 2,091 short positions and 2,913 spread positions. This left them representing 27.9% of total long open interest, 8.8% of total short open interest and 12.3% of total spread open interest.
Commercials got to their new net short cattle position by liquidating 488 long positions and covering 1,851 short positions, leaving them in control of 10.7% of total long open interest and 55.4% of total short open interest.
CME Group data show that total live cattle open interest on Tuesday was 305,686 positions, up 6,062, or 2.02%, from 299,624 the week before.
CME Group data also showed that the most-active Oct delivery month contract rose slightly during the week to settle at $109.87 per cwt from $108.45. This was a gain of $1.42 per cwt, or 1.31%.
FUNDS ADD TO CORN SHORT POSITION
During the same CFTC reporting week, managed money increased its net short position on CME Group corn futures to 80,539 contracts from 79,305, a gain of 1,234, or 1.56%, the CFTC said. It was their largest net short position since July 31 when it was 95,613 contracts.
At the same time, commercial traders increased their own net short corn position to 241,691 contracts from 226,449, a rise of 15,242, or 6.73%.
The CFTC said managed money arrived at its new net short corn position by adding 16,175 long positions and 17,409 short positions while unwinding 5,044 spread positions. This left them representing 16.1% of total long open interest, 21.0% of total short open interest and 10.3% of total spread open interest.
Commercials got to their new net short corn position by liquidating 29,524 long positions and covering 14,282 short positions, leaving them in control of 28.2% of total long open interest and 42.8% of total short open interest.
CME Group data shows that total corn open interest declined during the week to 1.655 million contracts from 1.672 million, a dip of 16,277, or 0.97%.
CME Group data also showed that the most-active Dec delivery month contract rose during the week to close Tuesday at $3.68 ¼ a bushel from $3.56 ¼, a gain of $0.12 a bushel, or 3.37%.
CATTLE, BEEF RECAP
No fed cattle sold Wednesday on the Livestock Exchange Video Auction, compared with 280 that traded two weeks previous at $109.50 per cwt.
Cash cattle traded last week at $107 to $108 per cwt on a live basis, unchanged from the previous week, and at $168 to $170 on a dressed basis, also unchanged.
The USDA choice cutout Friday was down $2.19 per cwt at $206.56, while select was off $0.74 at $197.09. The choice/select spread narrowed to $9.47 from $10.92 with 80 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $151.32 per cwt, up $0.28. This compares with Wednesday’s Sep settlement of $152.97, up $1.20.