Large commodity index funds, known as managed money, pared their collective net long live cattle position in the week ended Tuesday as cash cattle traders covered some of their total net short position.
The information came from the weekly Commitments of Traders report Friday issued by the Commodity Futures Trading Commission.
FUNDS DIVEST SOME LONG CATTLE POSITIONS
Tuesday, managed money had a collective net long live cattle futures position of 106,639 contracts, down 5,132, or 4.59%, from 111,771 a week earlier.
Cash cattle traders, known as commercial traders, Tuesday had a total net short live cattle position of 132,737 contracts, down 2,437, or 1.80%, from 135,174 a week earlier.
As of Tuesday, managed money held 121,944 long live cattle positions, or 37.4% of total open interest, for a loss of 4,376 contracts. They also held 15,305 short positions, or 4.7% of total open interest for a gain of 756, and they held 36,676 spread positions, or 11.3% of total open interest, for a gain of 468.
Commercials, Tuesday, held 41,656 long live cattle positions, or 12.8% of total open interest, for a decline of 2,179 contracts, and they held 174,393, short positions, or 53.5% of total open interest, for a decline of 4,616 contracts.
Total live cattle open interest at the CME Tuesday was 325,815 contracts, down 10,375, or 3.09%, from 336,190 a week earlier.
During the CFTC-reporting week, the Apr live cattle contract declined in value, closing at $237.42 per cwt, compared with $241.62.
FUNDS COVER CORN SHORTS
Tuesday, managed money had a collective net short corn futures position of 57,493 contracts, down 23,120, or 28.7%, from 80,613 a week earlier.
At the same time, commercials had a total net short position of 239,098 contracts, up 31,830, or 15.4%, from 207,268 a week earlier.
As of Tuesday, managed money held 214,350 long corn positions, or 12.3% of total open interest, for a gain of 543 contracts. They also held 271,843 short positions, or 15.7% of open interest, for a decline of 22,577, and they held 245,096 spread positions, or 14.1% of total open interest for a decline of 27,808.
Commercials, Tuesday, held 476,093 long corn positions, or 27.4% of total open interest, for a gain of 13,885 contracts. They also held 715,191 short positions, or 41.2% of total open interest, for a gain of 45,715.
At the CME, total corn open interest totaled 1.736 million contracts, down 5,000, or 0.29%, from 1.741 million a week earlier.
During the CFTC-reporting week, the May corn contract rose to settle at $4.37 ¼ a bushel, compared with $4.35 ¾ a week earlier. In between, it spiked to $4.38 ¾.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $240.65 per cwt to $247.06, compared with the previous week’s range of $236.32 to $242.85 per cwt. FOB dressed steers and heifers went for $376.57 per cwt to $385.81, compared with $369.10 to $380.59.
The USDA choice cutout Friday was down $0.37 per cwt at $364.47 while select was up $0.39 at $363.42. The choice/select spread narrowed to $1.05 from $1.81 with 45 loads of fabricated product and 14 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $429.23 per cwt, and 50% beef was $151.34.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $0.98 to $1.12 a bushel over the Mar corn contract, which settled at $4.31 3/4, up $0.00 .1/2
No live cattle delivery intentions were posted Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $373.91 per cwt, up $0.04. This compares with Friday’s Mar contract settlement of $366.15, up $0.42.