Managed money, a proxy for large commodity investment funds, cut their collective net long live cattle futures position in the week ended last Tuesday as hedgers trimmed their total net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS CUT LIVE CATTLE POSITION
The total net long live cattle position of managed money last Tuesday was 80,207 contracts, down 7,200, or 8.24%, from 87,407 a week earlier. It was their first cut after five weeks of gains.
Commercial traders, those who own, or will own, the cattle at some point and generally approach the market as hedgers, had a cumulative net short live cattle position last Tuesday of 160,142 contracts, down 4,763, or 2.89%, from 164,905 a week earlier. It was their first decline in net short positions in four weeks.
The CFTC said managed money arrived at their new cattle position by liquidating 6,244 long positions, adding 956 short positions and putting on 4,608 spread positions. This left them with 30.3% of total long open interest, 4.8% of total short open interest and 10.2% of total spread open interest.
Commercials got to their new cattle position by adding 1,078 long positions and covering 3,685 short positions, leaving them with 7.2% of total long open interest and 58.0% of total short open interest.
The CME Group said total live cattle open interest last Tuesday was 314,215 contracts, up 6,108, or 1.98%, from 308,107 a week earlier.
CME data also showed that the most-active live cattle contract fell in the latest CFTC week to settle last Tuesday at $126.90 per cwt, down from $131.70 a week earlier.
FUNDS TRIM LONG CORN POSITION
As of last Tuesday, managed money had a cumulative net long Chicago corn futures position of 245,750 contracts, down 12,133, or 4.70%, from 257,883 a week earlier.
At the same time, commercials had a cumulative net short corn position of 491,744 contracts, down 11,273, or 2.24%, from 503,017 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 5,606 long positions, adding 6,527 short positions and unwinding 11,809 spread positions. This left them in control of 20.5% of total long open interest, 2.6% of total short open interest and 9.8% of total spread open interest.
Commercials got to where they were by liquidating 22,675 long positions and covering 33,948 short positions, leaving them holding 26.6% of total long open interest and 62.3% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $122.43 to $127.40 per cwt, compared with the previous week’s weekly range of $125.41 to $126.44. FOB dressed steers and heifers went for $192.44 to $202.64 per cwt, versus $198.02 to $199.92.
The USDA choice cutout Friday was down $1.50 per cwt at $336.42, while select was down $0.84 at $304.13. The choice/select spread narrowed to $32.29 from $32.95 with 50 loads of fabricated product and 24 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 down $0.05 to up $0.15 at $1.75 to $1.95 a bushel over the Sep futures and for southwest Kansas were unchanged at $0.40 over Sep, which settled at $5.08 a bushel, down $0.08 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $157.74 per cwt down $0.20. This compares with Friday’s Sep contract settlement of $158.47 per cwt, down $1.82.