– For the second straight week, managed money, increased their cumulative net long live cattle futures position, but hedgers trimmed their total net short position.
The data came from Friday’s weekly Commitments of Traders report by the Commodity Futures Trading Commission, which shows a snapshot of the positions of various types of traders as of the previous Tuesday.
FUNDS BUY CATTLE
Large commodity index funds, also known as managed money, last Tuesday had a collective net long live cattle position of 101,040 contracts, up 2,003, or 2.02%, from 99,037 a week earlier.
Hedgers, better known as commercial traders, since they deal in the physical cattle, had a total net short live cattle position last Tuesday of 138,696 contracts, down 3,037, or 2.14%, from 141,733 a week earlier.
The CFTC said managed money arrived at their new long live cattle position by adding 3,804 contracts, 1,801 short positions and 569 new spread positions. This left them in charge of 35.2% of total long open interest, 4.7% of total short open interest and 13.8% of total spread open interest.
Commercial traders got to where they were last Tuesday by adding 3,201 long positions and 164 short positions, leaving them holding 10.2% of total long open interest and 52.1% of total short open interest.
The CME Group said total live cattle open interest last Tuesday was 332,095 contracts, up 10,860, or 3.38%, from 321,235 a week earlier.
CME Group data also showed the most-active Aug contract rose in value during the CFTC-reporting week to settle last Tuesday at $162.57 per cwt, compared with $162.47 a week earlier.
FUNDS BOOST NET SHORT CORN POSITION
Meanwhile, managed money last Tuesday had a collective net short Chicago corn position of 97,649 contracts, up 9,988, or 11.4%, from 87,661 a week earlier.
Commercial traders last Tuesday had a total net short corn position of 129,337 contracts, down 15,051, or 10.4%, from 144,388 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 80 long positions, 10,068 short positions and 2,370 spread positions. This left them holding 13.3% of total long open interest, 20.8% of total short open interest and 8.0% of total spread open interest.
Commercial traders got to where they were last Tuesday by adding 6.655 long positions and covering 8,396 short positions, leaving them with 31.0% of total long open interest and 41.0% of total short open interest.
The CME Group said total corn open interest last Tuesday was 11.295 million contracts, up 0.02%, from 1.293 million a week earlier.
CME Group data also showed that the most-active Jul corn contract rose in value during the CFTC-reporting week to settle last Tuesday at $5.77 ½ a bushel, compared with $5.81 ¼.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $169.74 per cwt to $183.99, compared with the previous week’s range of $169.94 to $177.58 per cwt. FOB dressed steers, and heifers went for $268.57 per cwt to $278.21, compared with $269.65 to $276.85.
The USDA choice cutout Friday was up $3.99 per cwt at $303.93 while select was up $0.38 at $284.92. The choice/select spread widened to $19.01 from $15.40 with 74 loads of fabricated product and 15 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.73 to $1.85 a bushel over the Jul corn contract, which settled at $6.04 a bushel, up $0.13 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $209.86 per cwt, up $1.72. This compares with Friday’s Aug contract settlement of $233.92 per cwt, down $0.77.