During the week ended last Tuesday, April 21, large commodity investment firms, known as managed money, pared their collective net long live cattle futures position, as cash cattle traders trimmed their total net short position.
That was deduced from data contained in the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
FUNDS ONLY PRUNE NET LONG POSITION
Last Tuesday, managed money had a collective net long live cattle position of 132,816 contracts, down 23, or 0.02%, from 132,839 a week earlier.
At the same time, cash cattle traders, known as commercial traders, had a total net short live cattle position of 146,931 contracts, down 4,591, or 3.03%, from 151,522 a week earlier.
Broken down, managed money last Tuesday held 142,863 long positions, or 42.1% of total open interest, for a decline of 370 contracts. They also held 10,047 short positions, or 3.0% of total open interest, for a decline of 347, and they held 47,164 spread positions, or 13.9% of total open interest, for a gain of 5,036.
Last Tuesday, commercial traders held 28,252 long positions, or 8.3% of total open interest, for a decline of 2,857, and they held 175,183 short positions, or 51.7% of total open interest, for a decline of 7,448.
At the CME last Tuesday, total live cattle open interest was 339,003 contracts, down 1,986, or 0.58%, from 340,989 a week earlier.
The Jun live cattle contract declined during the CFTC-reporting week to settle last Tuesday at $243.55 per cwt from $251.42.
FUNDS TURN, BUY CORN
After four weeks of selling, managed money turned around in the week ended last Tuesday and bought corn to expand their collective net long position to 182,213 contracts. This was up 29,595 contracts, or 19.4%, from 152,618 contracts a week earlier.
Commercials, meanwhile, sold corn to wind up last Tuesday with a total net short position of 511,008 contracts, up 15,376, or 3.10%, from 495,632 a week earlier.
Broken down, managed money last Tuesday held 327,557 long corn positions, or 17.9% of total open interest, for a gain of 30,363 contracts. They also held 145,344 short positions, or 7.9% of total open interest, for a gain of 768, and they held 270,435 spread positions, or 14.8% of total open interest, for a decline of 16,503.
Commercials last Tuesday held 388,549 long positions, or 21.2% of total open interest, for a decline of 24,534 contracts, and they held 899,557 short positions, or 49.1% of total open interest, for a decline of 9,158.
At the CME last Tuesday, total corn open interest was 1.832 million contracts, down 2,000, or 0.11%, from 1.834 million a week earlier.
The Jul corn contract settled last Tuesday at $4.62 a bushel, down from $4.52 ½ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $246.87 per cwt to $247.37, compared with last week’s range of $245.55 to $252.00 per cwt. FOB dressed steers and heifers went for $388.56 per cwt to $389.29, compared with $386.05 to $397.06.
The USDA choice cutout Monday was up $2.56 per cwt at $389.56 while select was up $2.53 at $388.60. The choice/select spread widened to $0.96 from $0.93 with 76 loads of fabricated product and 18 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $446.75 per cwt, and 50% beef was $193.11.
The USDA said basis bids for corn from feeders in the Southern Plains were up $0.05 to $0.06 at $1.08 to $1.20 a bushel over the May corn contract, which settled at $4.60 3/4 a bushel, up $0.05 3/4.
No live cattle contracts were tendered for delivery Monday.
The CME Feeder Cattle Index for the seven days ended Friday was $369.34 per cwt, up $0.02. This compares with Monday’s Apr contract settlement of $370.57, up $2.95, and May’s $367.45, up $6.55.