For the fifth straight week, managed money, a proxy for large commodity index funds, shortened their collective net long live cattle futures position in the week ended Tuesday.
At the same time, cash cattle traders, or commercial traders, lengthened their total net short position, according to data from the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday.
FUNDS SELL LIVE CATTLE
Tuesday, managed money had a collective net long live cattle position of 109,072 contracts, down 7,035, or 6.06%, from 116,107 a week earlier. It was their smallest net long position since March 24 when it was 107,593 contracts.
Commercial traders Tuesday had a total net short live cattle position of 128,829 contracts, up 6,582, or 5.38%, from 122,247 a week earlier.
Broken down, managed money’s position held 120,206 long positions, or 37.9% of total open interest, for a decline of 9,168 contracts. It also held 11,134 short positions, of 3.5% of total open interest, for a decline of 2,133, and it held 40,327 spread positions, or 12.7% of total open interest, for a decline of 1,331.
At the same time, commercials’ position held 33,366 long positions, or 10.5% of total open interest, for a decline of 1,312, and it held 162,195 short positions, of 51.5% of total open interest for a gain of 5,270.
At the CME Tuesday, total live cattle open interest was 317,380 contracts, down 25,907, or 7.55%, from 343,287 a week earlier.
The Aug live cattle contract rose during the CFTC-reporting week to settle Tuesday at $239.70 per cwt, compared with $239.65 a week earlier.
FUNDS ALSO SELL CORN
Managed money also sold corn futures during the CFTC-reporting week to come out on Tuesday with a collective net short position of 1,306 contracts, down from being net long by 120,136 a week earlier. It was the first time being net short since Feb. 24, when their position was short by 13,234 contracts.
At the same time, commercial traders had a total net short corn position of 398,197 contracts, down 58,487, or 12.8%, from 456,684 a week earlier. It was their smallest net short position since March 3 when it was short by 365,054 contracts.
Broken down, managed money’s position held 294,932 long positions, or 15.4% of total open interest, for a decline of 18,199. It also held 296,238 short positions, or 15.5% of total open interest, for a gain of 103,243, and it held 272,852 spread positions, or 14.3% of total open interest, for a decline of 10,438.
Commercial traders’ position held 454,580 long positions, or 23.8% of total open interest, for a gain of 64,037 contracts. It also held 852,777 short positions, or 44.6% of total open interest, for a gain of 5,550.
At the CME Tuesday, corn open interest totaled 317,380 contracts, down 25,907, or 7.55%, from 343,287 a week earlier.
During the CFTC-reporting week, the Jul corn contract fell to settle at $4.19 ½ a bushel, compared with $4.40 ½ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $256.51 per cwt to $260.37, compared with the previous week’s range of $256.34 to $262.23 per cwt. FOB dressed steers and heifers went for $403.28 per cwt to $408.57, compared with $403.95 to $409.71.
The USDA choice cutout Friday was down $1.28 per cwt at $391.93 while select was down $0.53 at $372.72. The choice/select spread narrowed to $19.21, from $19.96 with 62 loads of fabricated product and 15 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $456.84 per cwt, and 50% beef was $183.48.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.20 to $1.45 a bushel over the Jul corn contract, which settled at $4.12 3/4 a bushel, up $0.01.
No live cattle contracts were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $368.01 per cwt, down $2.09. This compares with Friday’s Aug contract settlement of $357.42, down $2.22.