Large commodity index funds, known as managed money, cut their collective net long live cattle futures position during the week ended last Tuesday, Feb. 11, as commercial traders trimmed their total net short position.
The data came from the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
FUNDS SELL CATTLE
Last Tuesday, managed money had a collective net long live cattle position of 136,369 contracts, down 15,934, or 10.5%, from 152,303 a week earlier and their second straight week of declines.
At the same time, commercial traders, who work from the cash-market side of the market and primarily use futures to hedge their position, had a total net short cattle position of 142,445 contracts, down 4,027, or 2.75%, from 146,472 a week earlier.
The CFTC said managed money last Tuesday had 151,861 long positions, representing 41.3% of total open interest, a decline of 16,899 from a week earlier. They also had 15,492 short positions, representing 4.2% of total open interest, a decline of 965. And they had 39,376 spread positions, representing 10.7%, a gain of 594 from a week earlier.
Commercials, meanwhile, held 45,444 long positions, representing 12.4% of total open interest, a decline of 748 contracts, and 187,889 short positions, representing 51.1% of total open interest, a decline of 4,775.
CFTC data also showed total live cattle open interest last Tuesday was 367,803 contracts, down 18,365, or 4.76%, from 386,168 a week earlier.
CME Group data showed the most-active Apr contract declined during the CFTC-reporting week to settle at $196.00 per cwt, compared with $198.65 a week earlier.
FUNDS SELL CORN
Last Tuesday, managed money had a collective net long Chicago corn position of 326,244 contracts, down 35,287, or 9.76%, from 361,531 a week earlier.
Commercials had a total net short corn position of 677,357 contracts, down 30,821, or 4.35%, from 708,178 a week earlier.
The CFTC said managed money last Tuesday had 410,303 long positions, representing 20.3% of total open interest, a decline of 34,617; they had 84,059 short positions, representing 4.1% of total open interest, a grin of 670, and they had 411,111 spread positions, representing 20.3% of total open interest, a gain of 31,120.
Commercials had 14,971 long positions, representing 19.2% of total open interest, a gain of 14,971, and 1.066 million short positions, representing 52.6% of total open interest, a decline of 15,850.
CFTC data also showed total corn open interest last Tuesday at 2.026 million contracts, up from 2.019 million a week earlier.
The most-active May corn contract declined in value during the CFTC-reporting week, settling at $4.98 a bushel, versus $5.04 ¾ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $206.00 per cwt to $210.58, compared with the previous week’s range of $204.48 to $210.94 per cwt. FOB dressed steers, and heifers went for $323.19 per cwt to $327.97, compared with $320.86 to $336.40.
The USDA choice cutout Friday was down $2.70 per cwt at $314.70 while select was off $2.70 at $307.14. The choice/select spread was unchanged at $7.56 with 69 loads of fabricated product and 17 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $373.56 per cwt, and 50% beef was $115.45.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.17 to $1.30 a bushel over the Mar corn contract, which settled at $4.96 1/4, up $0.02 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $276.23 per cwt, up $1.81. This compares with Friday’s Mar contract settlement of $266.35, down $1.62.