US beef exports remained on a red-hot pace in June, topping $1 billion for the fifth time this year, after twice hitting $1 billion in 2021, according to data released by USDA and compiled by the US Meat Export Federation. US pork exports remained below last year’s large totals in June, the USMEF said. … Read More
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Funds Boost Net Long Cattle Position 8-5-22 – Large commodity index funds, better known as managed money, lifted their collective net long live cattle futures position for the fourth straight week in the period ended Tuesday as hedgers increased their net short positions. The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday. MANAGED MONEY GETS LONGER CATTLE Managed money took on a longer collective live cattle position as of Tuesday than they had a week earlier, going to 32,069 contracts, up 1,028, or 3.21%, from 31,041 a week earlier. It was their largest long cattle position since June 21 when it was 33,072 contracts. At the same time, hedgers, known as commercial traders, since they own, or will own, the cattle at some point, Tuesday had a total net short position of 97,285 contracts, up 2,684, or 2.85%, from 94,601 a week earlier. It was their largest net short position since June 21 when their position totaled 105,610 contracts. The CFTC said managed money arrived at their new cattle position by liquidating 500 long positions, covering 1,528 short positions and unwinding 1,174 spread positions. This left them holding 25.7% of total long open interest, 12.9% of total short open interest and 10.5% of total spread open interest. Commercials got to their new position by adding 363 long positions and 3,047 short positions, leaving them with 12.9% of total long open interest and 51.7% of total short open interest. The CME Group said total live cattle open interest Tuesday was 250,660 contracts, down 2,263, or 0.89%, from 252,923 a week earlier. The CME Group also said the most-active Oct live cattle contract declined slightly over the week to settle Tuesday at $142.12 per cwt, compared with $142.37 a week earlier. FUNDS BOOST LONG CORN POSITION As of Tuesday, managed money had a net long Chicago corn futures position of 118,034 contracts, up 6,250, or 5.59%, from 111,784 a week earlier. Commercials, though, had a total net short corn position of 398,877 contracts, up from 390,614 a week earlier. The CFTC said managed money arrived at their new corn position by adding 7,861 long positions, 1,611 short positions and 1,611 spread positions. This left them in charge of 14.8% or total long open interest, 6.0% of total short open interest and 10.3% of total spread open interest. Commercials got to where they were Tuesday by adding 613 long positions and 8,876 short positions, leaving them holding 27.0% of total long open interest and 56.6% of total short open interest. The CME Group said total corn open interest Tuesday was 1.347 million contracts, up 1.56% from 1.327 million a week earlier. CATTLE, BEEF RECAP The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $135.00 to $142.13 per cwt, compared with the previous week’s range of $136.00 to $150.00. FOB dressed steers, and heifers went for $212.71 to $217.25 per cwt, versus $213.91 to $219.67. The USDA choice cutout Friday was down $1.66 per cwt at $264.62 while select was down $1.68 at $238.67. The choice/select spread widened to $25.95 from $25.93 with 80 loads of fabricated product and 28 loads of trimmings and grinds sold into the spot market. The USDA said basis bids for corn from feeders in the Southern Plains were steady at $2.60 to $2.70 a bushel over the Sep futures and for southwest Kansas were unchanged at $0.10 over Sep, which settled at $6.10 1/4, up $0.08. The CME Feeder Cattle Index for the seven days ended Thursday was $175.43 per cwt up $1.68. This compares with Friday’s Aug contract settlement of $179.52, up $0.45. IN OUR OPINION –Some analysts said the cattle market now will have to prove it to the world that fed cattle numbers have peaked for this cattle cycle. It will do this by steadily rising prices for the open-market cattle on feedlot showlists. It also may show up in higher prices for contracted cattle, especially those answering specific breeding, handling or implant specifications. At some point, fed cattle numbers will go down, and every feeder in the country will wish they had more to sell, but with drought ravaging much of western pastureland, and females headed to slaughter, it won’t be long before the market knows tight supplies are a thing. –High-priced corn is affecting hog markets, too. Butcher hog weights are coming down. Some contract growers may be seeing some discounts on their hogs because of the lighter weights.
Large commodity index funds, better known as managed money, lifted their collective net long live cattle futures position for the fourth straight week in the period ended Tuesday as hedgers increased their net short positions. The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday. MANAGED MONEY GETS LONGER … Read More
Higher 2023 Crop Costs Projected
In the first release of the 2023 Illinois Crop Budgets on farmdocdaily, costs were projected to increase next year. At projected costs, per bushel prices of $5.30 for corn and $12.75 for soybeans result in only marginal profitability, similar to levels experienced from 2014 to 2019, said University of Illinois Agricultural Economists Gary Schnitkey, Krista … Read More
Drought Hastening Cow, Heifer Cull
Drought advanced rapidly across Oklahoma in July, said Oklahoma State University Extension Livestock Specialist Derrell Peel, in a letter to Extension Agents called Cow-Calf Corner, and the beef industry is poised to see the largest single-year beef cow herd decrease in more than 35 years. At the end of June, the National Weather Service Drought … Read More
Farmer Sentiment Rises Despite Headwinds
The monthly Purdue University/CME Group Ag Economy Barometer farmer sentiment index rose six points in July to a reading of 103, said a release from Purdue Agricultural Economist James Mintert, in a release. The Ag Economy Barometer is calculated each month from 400 US agricultural producers’ responses to a telephone survey. This month’s survey was … Read More
Q2 Farm Loans Grow In Size, Number
Larger sized farm loans in the second quarter continued to boost lending activity while farm loan interest rates edged higher, said Kansas City Federal Reserve Bank Economists Ty Kreitman and Cortney Cowley in a release. The volume of non-real estate agricultural loans grew at a steady, 17% pace alongside an increase in the number and … Read More
Managed Money Doubles Down On Cattle Futures
Large commodity index funds, known as managed money, more than doubled their collective net long live cattle futures position during the week ended Tuesday as hedgers extended their total net short position. The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday. FUNDS GO FOR CATTLE Tuesday, managed … Read More