Large commodity investment funds, or managed money, again increased their collective net long live cattle futures position in the week ended Tuesday as hedgers boosted their net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS INCREASE LONG CATTLE POSITIONS
As of Tuesday, managed money’s collective net long cattle position totaled 64,823 contracts, up 5,508, or 9.29%, from 59,315 a week earlier. It was their largest net long position since April 20 when it was 66,819 contracts.
Those hedgers, known as commercial traders, had a collective net short position Tuesday of 151,382 contracts, up 3,974, or 2.70%, from 147,408 a week earlier. It was their largest net short position since April 20 when it was 153,090 contracts.
The CFTC said managed money arrived at their new long cattle position Tuesday by liquidating 714 long positions, covering 6,222 short positions and putting on 5,404 spread positions. This left them holding 29.7% of total long open interest, 8.0% of total short open interest and 10.4% of total spread open interest.
Commercials got to their new cattle position by liquidating 1,686 long positions and adding 2,288 short positions, leaving them with 7.2% of total long open interest and 57.7% of total short open interest.
The CME Group said total live cattle open interest Tuesday came to 299,739 contracts, up 1,269, or 0.43%, from 298,470 a week earlier.
CME data also showed that the most-actively traded Aug contract declined during the week ended Tuesday, settling at $123.17 per cwt, compared with $123.90. However, the contract reached a high of $127.55 on Wednesday and a low of $120.50 on Monday.
FUNDS CUT LONG CORN POSITIONS
At the same time, managed money trimmed their net long corn positions for the third straight week, coming in Tuesday with 242,811 contracts, down 12,096, or 4.75%, from 254,907 a week earlier. It was their smallest net long position since Dec. 15 when it was 228,307 contracts.
Commercial traders’ net short position Tuesday totaled 581,041 contracts, down 25,110, or 4.14%, from 606,151 a week earlier. It was their smallest net short position since Nov. 3 when it was 577,698 contracts.
Managed money arrived at their new corn position by liquidating 15,942 long positions, covering 3,846 short positions and unwinding 386 spread positions. This left them with 16.7% of total long open interest, 1.8% of total short open interest and 10.7% of total spread open interest.
Commercials liquidated 52,105 long positions and covered 77,215 short positions, leaving them with 28.3% of total long open interest and 63.9% of total short open interest.
CATTLE, BEEF RECAP
Fed cattle traded last week is at $122 to $125 per cwt, up $1 to $2 from last week. Dressed-basis trading was at $197 to $198, up $2 to $8.
The USDA choice cutout Friday was down $2.86 per cwt at $304.56, while select was up $0.04 at $276.18. The choice/select spread narrowed to $28.38 from $31.28 with 80 loads of fabricated product and 14 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 $1.12 a bushel over the Jul futures and for southwest Kansas were unchanged at $0.70 over Jul, which settled at $6.36 1/2 a bushel, down $0.18 3/4.
No live cattle delivery notices were tendered Friday against the Jun contract.
The CME Feeder Cattle Index for the seven days ended Thursday was $146.29 per cwt down $0.20. This compares with Friday’s Aug contract settlement of $159.55 per cwt, up $2.40.