Large commodity index funds, called managed money, again sold live cattle futures aggressively during the week ended Tuesday, taking them to their lowest collective net long position in more than five months.
That was according to the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday. The report also said cattle owners covered their own short live cattle positions during the week to their lowest point in six months.
MANAGED MONEY SELLS CATTLE
As of Tuesday, managed money’s collective net long live cattle position stood at only 13,650 contracts, down 19,737, or 59.1%, from 33,387 a week earlier. It was their lowest net long position since May 19 when it was 12,626 contracts long and their fourth straight week of a declining long position.
Cattle owners, called commercial traders, had a collective net short position Tuesday of 97,020 contracts, down 12,480, or 11.4%, from 109,500 a week earlier. It was their smallest net short cattle position since April 21 when it was short by 93,249 contracts and the fourth straight week of declines.
The CFTC said managed money arrived at their new net long position by liquidating 8,268 long positions, adding 11,469 long positions and putting on 1,160 new spread positions. This left their collective position representing 21.2% of total long open interest, 16.3% of total short open interest and 10.8% of spread open interest.
Commercials got to where they were by adding 10,575 long positions and covering 1,905 short positions, leaving them in charge of 14.4% of total long open interest and 49.4% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday was 276,795 contracts, up 7,695, or 2.86%, from 269,100 a week earlier.
CME Group data also showed that the most-active Dec futures contract fell during the CFTC week to settle Tuesday at $104.05 per cwt, down from $105.45 the previous Tuesday. The contract since has rallied sharply.
FUNDS BUY MORE CORN
During the same week, managed money continued to buy Chicago corn futures aggressively, taking their collective net long position to 258,738 contracts, up 47,164, or 22.3%, from 211,575 a week earlier and their largest net long position in more than a year.
Commercials took their collective net short position to 565,700 contracts, up 99,458, or 21.3%, from 466,242 a week earlier. It was their largest short position in more than a year.
The CFTC said managed money arrived at their new long corn position by adding 30,242 long positions, covering 16,921 short positions and putting on 18,741 spreads.
Commercials liquidated 20,289 long positions and added 79,169 short positions.
CATTLE, BEEF RECAP
Fed cattle trading last week was seen at $103 to $106.25 per cwt on a live basis, down $1 to up $0.25 from the previous week. Dressed-basis trading was at $160 to $162 per cwt, down $3 to $4.
The USDA choice cutout Friday was up $0.78 per cwt at $208.10, while select was up $0.01 at $191.24. The choice/select spread widened to $16.86 from $16.09 with 81 loads of fabricated product and 25 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 unchanged at $1.08 to $1.20 per bushel over the Dec CME futures contract, which settled at $3.98 1/2 a bushel, unchanged.
There were no delivery notices against the Oct live cattle futures market Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $136.76 per cwt, up $2.42. This compares with Friday’s Nov contract settlement of $137.40 per cwt, up $1.67.