Large commodity investment firms, called managed money, boosted their collective net long live cattle futures position during the week ended last Tuesday, June 15.
At the same time, hedgers increased their collective net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Monday. The report was delayed from its usual Friday release by observance of the new Juneteenth holiday.
FUNDS GET LONGER CATTLE
The new collective net long live cattle position as of last Tuesday totaled 59,315 contracts, up 8,888, or 17.6%, from 50,427 a week earlier. It was their second straight weekly increase in their net long position and took them to their highest long position since April 20 when it was 66,819 contracts.
Hedgers, traders who own, or will own, the cattle at some point, known as commercial traders, advanced their collective net short live cattle position in the week ended last Tuesday to 147,408 contracts, up 4,807, or 3.37%, from 142,601. This was their second straight increase and took their position to the largest it has been since May 25 when it was 149,130 contracts.
The CFTC said managed money arrived at their new net long position by adding 2,433 long positions, covering 6,455 short positions and unwinding 1,902 spread positions. This left their position representing 30.0% of total long open interest, 10.2% of total short open interest and 8.7% of total spread open interest.
Commercials got to where they were by liquidating 2,589 long positions and adding 2,218 short positions, leaving them in charge of 7.8% of total long open interest and 57.2% of total short open interest.
The CME Group said total live cattle open interest last Tuesday was 298,470 contracts, down 1,467, or 0.49%, from 299,937 a week earlier.
CME data also showed that the most-active Aug contract rose in value during the CFTC week, settling at $123.90 per cwt, compared with $117.82.
FUNDS PARE LONG CORN POSITION
As of last Tuesday, managed money had trimmed their net long corn position to 254,907 contracts, down 22,646, or 8.16%, from 277,553 a week earlier.
Commercials also cut their net short corn position to 606,151 contracts from 640,094 a week earlier, a dip of 33,943, or 5.30%.
The CFTC said managed money arrived at their new corn position by liquidating 19,838 long positions, adding 2,808 short positions and putting on 17,483 spread positions. This left them with 16.7% of total long open interest, 1.9% of total short open interest and 10.1% of total spread open interest.
Commercials liquidated 5,023 long positions and covered 38,966 short positions.
CATTLE, BEEF RECAP
Fed cattle traded last week at $120 to $124 per cwt on a live basis, up $1 from the previous week. Dressed-basis trading last week was at $190 to $195, up $1 to $2.
The USDA choice cutout Monday was down $2.08 per cwt at $321.20, while select was off $2.15 at $281.46. The choice/select spread widened to $39.74 from $39.67 with 67 loads of fabricated product and 23 loads of trimmings and grinds sold into the spot market.
The USDA reported Monday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.00 to $1.07 a bushel over the Jul futures and for southwest Kansas were unchanged at $0.70 over Jul, which settled at $6.59 1/4 a bushel, up $0.04.
No live cattle delivery notices were tendered Monday against the Jun contract.
The CME Feeder Cattle Index for the seven days ended Wednesday was $141.28 per cwt up $0.93. This compares with Monday’s Aug contract settlement of $155.10 per cwt, up $0.07.