Large investment funds, called managed money, trimmed their net long position in live cattle futures for the second straight week during the week ended Tuesday as futures made a short-term peak and moved lower.
The Commodity Futures Trading Commission, in its weekly Commitment of Traders report Friday, said managed money’s net long live cattle position amounted to 25,730 contracts, down 2,312, or 8,24%, from 28,042 the previous week.
During the same week, commercial traders, those who actually own or handle the cattle, trimmed their net short position to 63,573 contracts, down 2,042, or 3.11%, from 65,615 the previous week, the CFTC said.
Managed money arrived at its new position by liquidating 227 long positions and adding 2,085 short positions and 745 spread positions. This left them representing 29.7% of total long positions and 19.9% of total short positions.
Commercials got to their new net short position by adding 1,317 long positions and covering 725 shorts, leaving them in control of 14.0% of total long open interest and 38.2% of total short open interest.
The CME Group reported total open interest during the week ended Tuesday fell 1,701 contracts, or 0.64%, to 263,225 from 264,926.
During the CFTC reporting week, the most-active Dec contract continued the previous Tuesday’s jump to make a new short-term high of $103.82 per cwt on Thursday. But once set, the contract dropped sharply to Tuesday’s close of $99.10 per cwt. The contract continued to fall until Friday’s pre-weekend pop.
FUNDS CUT NET SHORT POSITION
Managed money cut its net short position in corn futures during the week ended Tuesday for the second straight week as commercial traders built their short position, the CFTC said.
Managed money’s new corn position was net short by 121,814 contracts, down 31,282, or 20.4%, from 153,096 the previous week, the CFTC said.
Commercial traders’ new net short corn position was 202,213 contracts, up 18,493, or 10.1%, from 183,720 the previous week.
Managed money arrived at its new net short corn position by liquidating 3,075 long positions and covering 34,257 shorts while adding 5,541 spread positions. This left them representing 13.8% of total long open interest and 23.1% of total short open interest.
Commercials got to their new net short position by liquidating 6,516 long positions and adding 11,977 short positions, leaving them in control of 24.2% of total long open interest and 39.7% of total short open interest.
Total open interest for the latest CFTC week declined to 1.306 million contracts from 1.312 million the previous week, the CME Group said. This was down 5,326 contracts, or 0.41%.
During the latest CFTC week, the most-active Dec contract declined $0.02 2/4 a bushel, or 0.79%, to close at $3.45 ½ a bushel from $3.48 1/4. The contract has since gone on to make three-month highs amid yield and harvest worries.
CASH CATTLE MARKETS TRADE LOWER
Cash cattle markets last week traded lower, with grudging action at $98 per cwt on a live basis, down $4 to $5 from the previous week, and at $152 to $156 dressed, down $6.
The USDA’s choice cutout Friday was $0.26 per cwt higher at $181.86, while select was off $0.57 at $172.04. The choice/select spread widened to $9.82 from $8.99 with 70 loads of fabricated product sold into the spot market.
The USDA said ribs, chucks and rounds were steady to weak with choice loins higher and select loins steady. Trimmings were not established.
The CME Feeder Cattle Index for the seven days ended Thursday was $143.43 per cwt, down $0.87. This compares with the Oct settlement Friday of $120.37, up $0.92.