Commercial traders continued to extend their net short position in live cattle futures during the week ended Tuesday, while managed money firms kept their positions near steady.
So those who theoretically could make or take delivery of futures contracts are losing faith in the market’s ability to maintain its current price gains, while fund type investors aren’t so sure of market direction.
Managed money, or the funds, increased their net long live cattle position by 4,428 contracts, or 38.7%, to 15,865 contracts during the week ended Tuesday from 11,437 the previous week, said the Commodity Futures Trading Commission in its weekly Commitments of Traders report Friday. It was their largest net long position since the week ended Jan. 26 when it was 6,203 contracts.
Meanwhile, commercial traders, extended their net short cattle position by 4,872 contracts, or 10.4%, to 51,769 contracts from 46,897 the previous week, the largest since 56,462 the week ended Aug. 26.
The CFTC said managed money arrived at its new net long cattle position by liquidating 225 long positions and covering 4,653 shorts while unwinding 1,036 spreads. This left them representing 18.8% of total long open interest and 12.9% of total short open interest.
Commercials got to their latest CFTC positions by liquidating 2,881 long positions and adding 1,991 shorts, leaving them in control of 20.7% of total long open interest and 39.9% of total short open interest.
The CME Group reported total live cattle open interest during the latest CFTC reporting week declined 1,236 contracts, or 0.45%, to 270,921 contracts from 272,157.
During the week ended Tuesday, the most-active Apr futures contract rose $4.00 per cwt, or 3.01%, ending every day with a higher high. The contract settled Tuesday at $136.95 per cwt, up from $132.95 the previous week.
MANAGED MONEY, COMMERCIALS HOLD CORN POSITIONS
During the latest reporting week, managed money and commercial traders held their net short corn positions nearly steady, the CFTC reported.
Managed money’s new net short corn position was 138,000 contracts, up 437, or 0.32%, from 137,563 the previous week. This is the shortest these traders have been since the week ended Jan. 19 when they were short 163,153.
Commercials, reduced their net short positions during the week to 182,075 contracts from 183,851, a decline of 1,776, or 0.97%. This was their lowest net short position since the week ended Jan. 19 when it was 167,018.
The CFTC said managed money arrived at its new corn position by liquidating 1,368 long positions and covering 931 shorts while unwinding 15,022 spreads. This left them representing 11.6% of total long open interest and 21.8% of total short open interest.
Commercials got to their new position by liquidating 4,537 long positions and covering 6,313 shorts, leaving them in control of 24.7% of total long open interest and 38.1% of total short open interest.
The CME Group reported total corn open interest declined 49,566 contracts during the week, or 3.52%, to 1.359 million from 1.409 million.
During the latest week, the most-active May contract rose to a swing high of $3.69 ¼ on Monday before resuming its general decline on Tuesday.
CASH CATTLE REMAIN TRADE HIGHER
Cash cattle markets last week traded at $134 to mostly $137 on a live basis, up about $3 from the previous week, and from $212 to $214 dressed, up about $4.
The USDA reported lower wholesale beef prices Friday, with choice down $1.09 per cwt at $217.67, and select off $1.99 at $211.99. The choice/select spread widened to $5.68 from $4.78, and there were 80 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $158.18 per cwt, down $0.49. This compares with Mar’s Friday settlement of $158.65, down $0.45.