Large commodity index funds, known as managed money, expanded their collective net long live cattle futures in the week ended Tuesday as cash cattle traders increased their total net short positions.
The data came from the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday.
FUNDS BOOST LONG POSITION
Tuesday, managed money had a collective net long live cattle position of 125,583 contracts, up 2.778, or 2.26%, from 122,805 a week earlier.
At that time, cash cattle traders, known as commercial traders, had a total net short live cattle futures position of 141,088 contracts, up 2,357, or 1.70%, from 138,731 a week earlier.
Broken down, managed money’s position held 135,644 long positions, or 41.2% of total open interest, for a gain of 3,324 from a week earlier. It also held 10,061 short positions, or 3.1% of total open interest, for a gain of 546, and it held 41,449 spread positions, or qw.6% of total open interest, for a decline of 2,036.
Commercial traders’ position held 27,714 long positions, or 8.4% of total live cattle open interest, for a decline of 3,459 contracts. It also held 168,802 short positions, or 51.3% of total open interest, for a decline of 1,102.
Live cattle open interest at the CME Tuesday totaled 328,903 contracts, up 11,523, or 3.63%, from 317,380 a week earlier.
The Aug live cattle contract rose during the CFTC-reporting week to settle Tuesday at $246.00 per cwt, compared with $249.20 a week earlier.
FUNDS KEEP SELLING CORN
Tuesday, managed money had a collective net short corn futures position of 74,819 contracts, up 25,332, or 51.2%, from 49,487 a week earlier. It was their largest net short corn position since Feb. 3 when it was short by 80,613 contracts.
Meanwhile, commercials had a total net short corn position of 350,517 contracts, down 21,444, or 5.77%, from 371,961 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 corn position held 308,728 long positions, or 16.1% of total open interest, for a gain of 14,869 contracts. It also held 383,547 short positions, or 20.0% of total open interest, for a gain of 40,201 contracts, and it held 246,352 spread positions, or 12.8% of total open interest, for a decline of 30,132.
Commercials Tuesday held 432,955 long corn positions, or 22.5% of total open interest, for a decline of 19,775 contracts, and they held 783,472 short positions, or 40.8% of total open interest, for a decline of 41,219.
The Dec corn contract settled Tuesday at $4.37 ¼ a bushel, down from $4.42 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 $256.28 per cwt to $264.00, compared with the previous week’s range of $256.19 to $257.34 per cwt. FOB dressed steers and heifers went for $401.64 per cwt to $410.90, compared with $401.57 to $405.30.
The USDA choice cutout Friday was down $5.29 per cwt at $391.03 while select was off $3.16 at $371.58. The choice/select spread narrowed to $19.45, from $21.58 with 80 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 $458.69 per cwt, and 50% beef was $189.51.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.23 to $1.43 a bushel over the Jul corn contract, which settled at $4.12 3/4 a bushel, down $0.02.
No live cattle contracts were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $380.51 per cwt, down $1.35. This compares with Friday’s Aug contract settlement of $369.85, down $3.45.