Large commodity investment funds, known as managed money, continued to back away from their collective net long live cattle futures position in the week ended Tuesday as cattle owners pulled back from their net short position.
That conclusion came from data supplied by the Commodity Futures Trading Commission in its weekly Commitments of Traders report.
Specifically, the report said that managed money’s new net long cattle position was long by a net 68,581 contracts, down 4,016, or 5.53%, from 72,597 the previous Tuesday. It was their lowest net long position since Sep. 11 when it was long by 54,110 contracts.
At the same time, the cattle owners, known as commercial traders, reduced their net short live cattle position to 146,210 contracts from 151,470, a decline of 5,260, or 3.47%. It was their lowest net short position since Sep. 25 when it was short by 146,181 contracts.
The CFTC said managed money arrived at its net long cattle position by liquidating 983 long positions, adding 3,033 short positions and putting on 4,575 more spread positions. This left their position representing 27.1% of total long open interest, 7.2% of total short open interest and 14.7% of total spread open interest.
Commercials got to where they were by adding 1,854 long positions and covering 3,406 short positions, leaving them in control of 10.0% of total long open interest and 52.4% of total short open interest.
The CME Group said total live cattle futures open interest on Tuesday was 345,263 contracts, up 13,317, or 4.01%, from 331,946 the previous Tuesday.
CME data also showed that the most-active Dec contract declined in the week to settle at $116.52 per cwt from $117.15 the previous Tuesday.
FUNDS SELL CORN
Managed money also sold Chicago corn futures positions during the week ended Tuesday, ending up with a net long position of only 11,570 contracts, down 16,333, or 58.5%, from 27,903 the previous week and their lowest position in three weeks.
Commercials trimmed their net short position to 281,320 contracts from 294,375 in the latest CFTC week, a decline of 13,055, or 4.43%.
CFTC data showed that managed money arrived at its new net long corn position by liquidating 15,638 long positions, adding 695 short positions and putting on 19,311 new spread positions. This left them representing 14.5% of total long open interest 13.8% of total short open interest and 12.4% of total spread open interest.
Commercials got to where they were by adding 9,510 long positions and covering 3,545 short positions, leaving them in charge of 27.7% of total long open interest and 44.4% of total short open interest.
CME data showed at total corn open interest for the week rose to 1.685 million contracts from 1.656 million, an increase of 29,810, or 1.80%.
CME data also showed that the most-active Dec corn contract declined to settle Tuesday at $3.64 ¾ per bushel from $3.70 ¼.
CATTLE, BEEF RECAP
Cash cattle trade last week waited until late Friday, and many sellers passed. Trade ranged from $114 to $116 per cwt on a live basis, steady to up $1 from the bulk of trade the previous week. Dressed-basis trade was reported at $180 to $197, up $6 to $17.
The USDA choice cutout Friday was down $0.05 per cwt at $218.50, while select was off $2.78 at $201.47. The choice/select spread widened to $17.03 from $14.30 with 66 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $153.89 per cwt, down $0.29. This compares with Friday’s Nov settlement of $152.50, down $0.80.