Large commodity investment firms, or managed money, trimmed their collective net long live cattle futures position during the week ended Tuesday, while hedgers barely moved their net short position.
The data came from the Commodity Futures Trading Commission in its weekly Commitments of Traders report on Friday.
Managed money’s new net long position Tuesday stood at 64,319 contracts, down 7,595, or 10.6%, from 71,914 a week earlier. It was their lowest net long position in more than two years.
Hedgers, known as commercial traders, had a new net short position of 117,132 contracts, down 105, or 0.09%, from 117,237 a week earlier.
The CFTC said managed money arrived at its new net long cattle position by liquidating 3,061 long positions, adding 2,360 short positions and putting on 6,752 spread positions. This left them with 18.2% of total long open interest, 12.9% of total short open interest and 19.2% of total spread open interest.
Commercial traders got to where they were by liquidating 1,582 long positions and covering 1,687 short positions, leaving them in control of 12.0% of total long open interest and 48.8% of short open interest.
The CME Group listed total live cattle open interest Tuesday at 318,132 contracts, up 3,503, or 1.11%, from 314,629 a week earlier.
CME Group data also showed that the most-active Oct contract month fell during the CFTC week to close Tuesday at $99.25 per cwt, down from $106.22 a week earlier and after the fire at Tyson Foods’ Holcomb, KS, plant. This was a drop of $6.97, or $6.56%.
FUNDS CUT LONG CORN POSITION
As of Tuesday, managed money had a net long corn position of 21,527 contracts, down 46,559, or 68.4%, from 68,086 a week earlier. This was their lowest long position since being net short by 22,294 contracts on May 28.
At the same time, commercial traders had a net short position of 396,965 contracts, down 50,514, or 11.3%, from 447,479 the previous Tuesday.
The CFTC said managed money arrived at its new corn position by liquidating 15,680 long positions, adding 30,879 short positions and unwinding 46,456 spread positions. This left their position representing 11.7% of total long open interest, 10.5% of total short open interest and 11.6% of total spread open interest.
Commercials reached their new short corn position by adding 40,311 long positions and covering 10,203 short positions, leaving them with 31.2% of total long open interest and 53.7% of total short open interest.
The CME Group said total corn open interest as of Tuesday stood at 1.767 million contracts, down 48,869, or 2.69%, from 1.816 million a week earlier.
CME Group data also showed that the most-active Dec corn contract fell during the CFTC reporting week to settle Tuesday at $3.76 ¾ a bushel, compared with $4.12 ½ a week earlier. This was a decline of $0.35 ¾, or 8.67%.
CATTLE, BEEF RECAP
Cash cattle traded last week at $106 to $107 per cwt on a live basis, down $7 to $9 from the previous week, and at $170 dressed, down $11 to $13.
The USDA choice cutout Friday was up $2.57 per cwt at $238.69, while select was up $2.59 at $213.26. The choice/select spread narrowed to $25.43 from $25.45 with 71 loads of fabricated product sold into the spot market.
No cattle were tendered for delivery against the Aug contract Friday.
The CME Feeder Cattle index for the seven days ended Thursday was $137.60 per cwt, down $1.55 from the previous day. This compares with Friday’s Aug contract settlement of $137.60, down $1.55.