Funds Add To Net Long Cattle Position

Large commodity investment funds, called managed money, added slightly to their collective net long live cattle futures position in the week ended Tuesday as producer types made marginal gains in their net short position.

The Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday said managed money’s net long cattle position was 13,438 contracts, up 2,007, or 17.6%^, from 11,431 the previous Tuesday.  It was their first net long gain after 10 straight weeks of declines.

At the same time, commercial traders, those producer types who typically are hedgers, extended their collective net short position by 369 contracts, or 0.34%, to 108,375 contracts from 108,006 the previous week.  It also was their first short-position gain in 10 weeks.

The CFTC said managed money arrived at its new cattle position by adding 3,474 long positions, 1,467 short positions and placing 1,462 new spreads.  This left them with 21.9% of total long open interest, 18.1% of total short open interest and 12.8% of total spread open interest.

Commercials got to their new net short cattle position by adding 1,697 long positions and 2,066 short positions to leave them in control of 12.6% of total long open interest and 42.7% of total short open interest.

The CME Group said total live cattle open interest in the week ended Tuesday rose 9,501 contracts, or 2.70%, to 360,779 contracts from 351,278 the previous Tuesday.

During the CFTC reporting week, the CME Group’s most-active Jun live cattle contract rose to $106.30 per cwt from $105.82 the previous Tuesday, a gain of $0.48, or 0.45%.

 

FUNDS REACH LONGEST CORN POSITION IN SEVEN WEEKS

 

During the CFTC week, managed money increased its net long corn position to its largest point in seven weeks, rising 19,871 contracts, or 10.7%, to 206,147 contracts from 186,276 the previous week.

At the same time, commercial traders extended their net short position to its largest point in seven weeks, rising 7,530 contracts, or 1.29%, to 589,675 contracts from 582,145 the previous week.

CFTC data show managed money arrived at its new corn position by liquidating 155 long positions, covering 20,026 short positions and placing 38,704 new spread positions.  This left them representing 18.9% of total long open interest, 7.4% of total short open interest and 10.2% of total spread open interest.

Commercials reached their new net short position by adding 31,682 long positions and 39,212 short positions, leaving them in control of 21.1% of total long open interest and 54.0% of total short open interest.

CME Group data showed total corn open interest rose during the week to 1.793 million contracts from 1.751 million, a gain of 42,399, or 2.42%.

CME Group data showed that corn’s most-active Jul contract set a new nine-month high of $4.08 ¼ a bushel during the week before setting on Tuesday at $4.03 ¼.

 

CATTLE, BEEF RECAP

 

No cattle sold Wednesday on the Livestock Exchange Video Auction, compared with sales the previous week at $122.40 per cwt.

Cash trading last week was at mostly $122, up to $123, per cwt on a live basis, down $2 to mostly $4 from the previous week.  Dressed-basis trades were reported at $193.50 per cwt, down $1.50.

The USDA choice cutout Friday was down $0.10 per cwt at $230.97, while select was off $0.45 at $208.69.  The choice/select spread widened to $22.28 from $21.93 with 72 loads of fabricated product sold into the spot market.

The CME Feeder Cattle index for the seven days ended Thursday, was $137.21 per cwt, down $0.72.  This compares with Friday’s May close of $138.42, down $0.17.