During the week ended Tuesday, Nov. 25, large commodity index funds, known as managed money, further liquidated part of their collective net long position in live cattle futures. At the same time, cattle traders, known as commercial traders, trimmed their total net short live cattle position.
The data came from the Commodity Futures Trading Commission, which io catching up on its weekly Commitments of Traders reports that were held up by the government shutdown.
FUNDS PARE NET LONG POSITION
Tuesday, Nov. 25, managed money had a collective net long live cattle position of 91,268 contracts, down 4,759, or 4.96%, from 96,027 a week earlier. It was their fifth straight week of position reductions.
Also on that date, commercial traders had a total net short live cattle position of 116,070 contracts, down 177, or 0.15%, from 116,247 a week earlier. It was their sixth straight week of position reductions.
On Nov. 25, managed money held 111,973 long cattle positions, or 33.7% of total open interest, for a decline of 3,623 contracts. They also held 20,705 short positions, or 6.2% of total open interest, for a gain of 1,136 contracts, and they held 30,805 spread positions, or 12.0% of total open interest, for a decline of 560.
Meanwhile, commercial traders held 45,264 long cattle positions, or 13.6% of total open interest, for a gain of 1,834 contracts. They also held 151,334 short positions, or 48.5% of total open interest, for a gain of 1,657.
Total live cattle open interest at the CME on Nov. 25 was 332,580 contracts, down 1,035, or 0.31%, from 333,615 a week earlier.
During the week ended Nov. 25, the Feb live cattle contract fell in value, closing at $207.32 per cwt, down from $220.85.
FUNDS SELL CORN AGGRESSIVELY
Tuesday, Nov. 25, managed money had a collective net short corn position of 6,801 contracts, down from a net long position of 48,788 a week earlier. The move ended a five-week run of buying corn contracts that put them in net-long territory for one week.
That same Tuesday, commercials had a total net short corn position of 272,910 contracts, down 54,770, or 16.7%, from 327,680 a week earlier. They also ended a five-week run of ever-shorter positions.
On Nov. 25, managed money held 244,630 long corn positions, or 16.4% of total open interest, for a decline of 6,372 contracts. They also held 251,431 short positions, or 16.9% of total open interest, for a gain of 49,217, and they held 179,062 spread positions or 12.0% of total open interest for a decline of 17,949.
Commercials then held 360,420 long corn positions, or 24.2% of total open interest, for a decline of 24,136, and they held 633,330 short positions, or 42.5% of total open interest, for a decline of 78,906.
Open interest at the CME that Tuesday was 1.489 million contracts, down 127,000, or 7.86%, from 1.616 million a week earlier.
During that CFTC-reporting week, the Mar contract dropped to $4.38 ¼ a bushel from $4.49 ½.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $230.25 per cwt to $232.14, compared with last week’s range of $218.00 to $227.15 per cwt. FOB dressed steers and heifers went for $353.34 per cwt to $363.03, compared with $339.66 to $354.27.
The USDA choice cutout Tuesday was down $0.58 per cwt at $358.88 while select was up $1.80 at $349.10. The choice/select spread narrowed to $9.78 from $12.16 with 82 loads of fabricated product and 12 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $390.53 per cwt, and 50% beef was $130.82.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $0.90 to $1.10 a bushel over the Mar corn contract, which settled at $4.36 1/2, down $0.03 1/4.
No live cattle contracts were tendered for delivery Tuesday.
The CME Feeder Cattle Index for the seven days ended Friday was $347.37 per cwt, up $0.60. This compares with Monday’s Jan contract settlement of $339.92, up $0.82.