During the week ended Tuesday, large commodity index funds, called managed money, turned to liquidating a portion of their collective net long live cattle futures position, according to data from the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday.
At the same cash cattle traders, or commercial traders, covered a portion of their total net short live cattle futures position, the report showed.
FUNDS SELL CATTLE FUTURES
As of Tuesday, managed money had a collective net long live cattle futures position of 128,954 contracts, down 9,064, or 6.57%, from 138,018 a week earlier.
Commercial traders Tuesday had a total net short live cattle futures position of 137,390 contracts, down 11,277, or 7.59%, from 148,667 a week earlier.
Broken down, managed money’s position consisted of 143,522 long positions, or 40.4% of total open interest, for a decline of 6,269 contracts. They also held 14,568 short positions, or 4.1% of total open interest for a gain of 2,795, and they held 45,484 spread positions, or 12.8% of total open interest, for a decline of 3,973.
Commercials Tuesday held 26,519 long live cattle positions, or 7.5% of total open interest, for a decline of 5,243 contracts. They also held 163,909 short positions, or 46.2% of total open interest, for a decline of 16,520.
At the CME, live cattle open interest totaled 354,995 contracts, down 5,030, or 1.40%, from 360,025 a week earlier.
The Aug live cattle contract declined in value during the CFTC-reporting week to settle Tuesday at $241.07 per cwt, compared with $248.35 a week earlier.
FUNDS ALSO SELL CORN FUTURES
During the same CFTC-reporting week, managed money sold corn futures, ending Tuesday with a collective 295,620 contracts, down 49,021, or 14.2%, from 344,641 a week earlier.
Commercials also reduced their total net short corn position, ending the week with 600,639 contracts, down 103,414, or 14.7%, from 704,053 a week earlier.
Broken down, managed money Tuesday held 416,409 long corn positions, or 22,0% of total open interest, for a decline of 23,639 a week earlier. They also held 120,789 short positions, or 6.4% of total open interest, for a gain of 25,382, and they held 260,268 spread positions, or 13.8% of total open interest, for a gain of 9,579.
Commercials Tuesday held 334,749 long positions, or 17.7% of total open interest, for a gain of 17.7%, and they held 935,388 short positions, or 49.4% of total open interest, for a decline of 117,039 contracts.
At the CME Tuesday, corn open interest totaled 1.893 million contracts, down 18,000, or 0.04%, from 1.911 million a week earlier.
The Jul contract ended unchanged on Tuesday at $4.80 a bushel but dropped and recovered from a low of $4.61 a bushel on Thursday.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $251.82 per cwt to $260.00, compared with the previous week’s range of $246.25 to $259.00 per cwt. FOB dressed steers and heifers went for $400.43 per cwt to $409.84, compared with $388.77 to $402.31.
The USDA choice cutout Friday was up $1.80 per cwt at $389.25 while select was up $0.25 at $389.25. The choice/select spread was even at $0.00, from a minus $1.55 with 85 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 $454.02 per cwt, and 50% beef was $193.65.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.10 to $1.25 a bushel over the Jul corn contract, which settled at $4.55 3/4 a bushel, down $0.11 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $370.09 per cwt, down $3.14. This compares with Friday’s May contract settlement of $368.67, up $1.10.