Large commodity investment funds, called managed money, pruned their collective net long live cattle position in the week ended Tuesday as hedgers also trimmed their total net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders Report Friday, which summarizes the changes to the weekly trading positions of trader types from Tuesday to Tuesday.
FUNDS CUT LONG CATTLE POSITIONS
As of Tuesday, the collective net long position of managed money totaled 82,858 contracts, down 4,361, or 5.00%, from 87,219 the previous Tuesday. The move followed two weeks of a growing net long position.
Those hedgers, called commercial traders, trimmed their collective net short live cattle position to 166,433 contracts, down from 169,146 the previous Tuesday. The move followed two weeks of a growing net short position.
The CFTC said managed money arrived at their new cattle position by liquidating 4,430 long positions, covering 69 short positions and putting on 1,059 new spread positions. This left their position representing 30.3% of total long open interest, 5.8% of total short open interest and 11.5% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 4,130 long positions and covering 6,843 short positions leaving them holding 8.2% of total long open interest and 57.4% of total short open interest.
CME Group data showed total live cattle open interest Tuesday at 335,604 contracts, down 8,160, or 2.37%, from 343,764 a week earlier.
CME Group data also showed that the most-active Jun contract declined in value during the week ended Tuesday to settle at $120.92 per cwt, compared with $124.62.
FUNDS LONGER CORN
As of Tuesday, managed money had raised their collective net long Chicago corn position to 397,231 contracts, their largest in more than a year, and up 17,589, or 4.63%, from 379,642 a week earlier.
Also as of Tuesday, commercials had a total net short position of 757,857 contracts, up 10,230, or 1.37%, from 747,627 a week earlier.
The CFTC said managed money arrived at their new long corn position by adding 2,522 long positions, covering 1,641 short positions and putting on 1,026 new spread positions. This left them in charge of 23.5% of total long open interest, 1.3% of total short open interest and 8.7% of total spread open interest.
Commercials’ new position was the result of them adding 16,495 new long positions and 26,725 new short positions, leaving them with 25.8% of total long open interest and 68.1% of total short open interest.
Total open interest rose to 1.822 million contracts from 1.763 million.
CATTLE, BEEF RECAP
Fed cattle traded last week at $120 to $126 per cwt on a live basis, steady to up $1 from the previous week. Dressed-basis trading was at $193 to $196 per cwt, steady to down $2.
The USDA choice cutout Friday was down $0.57 per cwt at $276.05, while select was up $0.67 at $269.10. The choice/select spread narrowed to $6.95 from $8.19 with 65 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 unchanged at $1.05 to $1.16 a bushel over the May CBOT futures contract, which settled at $5.85 1/2 a bushel, down $0.04 1/2.
There were no delivery intentions posted against the Apr live cattle futures contract Friday. None were retendered, and none were demanded or reclaimed.
The CME Feeder Cattle Index for the seven days ended Thursday was $141.68 per cwt down $0.62. This compares with Friday’s Apr contract settlement of $139.62 per cwt, down $0.42.