Managed money, or large commodity investment funds, raised their collective net long live cattle futures position during the week ended Tuesday, while hedgers trimmed their net short position slightly.
The Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday said that as of Tuesday, managed money had a net long position of 27,190 contracts, up 2,282, or 9.16%, from 24,908 the previous Tuesday. This was their largest net long position since April 3 when it was 34,940 contracts.
During the latest CFTC reporting week, commercial traders (those hedgers) had a net short position of 99,429 contracts as of Tuesday, down 070, or 0.97%, from 100,399 the previous week. This was their shortest position since June 12 when it was short by 99,172 contracts.
The CFTC said managed money reached its new net long cattle position by liquidating 774 long positions, covering 3,056 short positions and placing 1,727 spread positions. This left them representing 23.6% of total long open interest, 15.3% of total short open interest and 12.5% of total spread open interest.
Commercials got to their new net short position by liquidating 178 long positions and covering 1,148 spread positions, leaving them in control of 11.9% of total long open interest and 42.2% of total short open interest.
The CME Group said total live cattle open interest for the CFTC reporting week rose to 327,634 contracts from 327,114, a gain of 520, or 0.16%.
During the week, the most-active Aug live cattle contract rose from the previous Tuesday’s settlement of $106.42 per cwt to a three-month high of $107.62 on Wednesday, only to close Tuesday at $102.42, a weekly decline of $4.00, or 3.76%.
FUNDS GET SHORTER CORN
Meanwhile, managed money continued to sell corn futures, racking up a larger net short position, their largest since Jan. 30 when it was short by 129,054 contracts.
As of Tuesday, managed money was net short CBOT corn by 90,764 contracts, up 33,313, or 58.0%, from 57,451 the previous Tuesday.
Conversely, commercial traders cut their net short corn position to 327,077 contracts from 395,567 the previous week, a drop of 68,490, or 17.3%. It was their lowest net short position since Feb. 6 when it was short by 275,941 contracts.
The CFTC said managed money arrived at its new corn position by liquidating 12,316 long positions, adding 20,997 short positions and unwinding 9,993 spread positions. This left them representing 15.2% of total long open interest, 20.0% of total short open interest and 8.1% of total spread open interest.
Commercials got to their new position by liquidating 12,097 long positions and covering 80,587 short positions, leaving them holding 27.2% of total long open interest and 44.6% of total short open interest.
CATTLE, BEEF RECAP
Three hundred six head of fed cattle sold Wednesday on the Livestock Exchange Video Auction at $106 per cwt, down $4 from the previous Wednesday’s $110.
Cash trade was reported Wednesday at $106 per cwt on a live basis, down $2 to $4 from last week, and at $168 to $170 on a dressed basis, down $3 to $4. On Friday more cattle sold at $107 to $108 per cwt live, down $1 to $2.
The USDA choice cutout Friday was down $1.28 per cwt at $211.96, while select was off $2.09 at $198.57. The choice/select spread narrowed to $14.42 from $12.58 with 93 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $142.00 per cwt, down $0.55. This compares with Friday’s Aug settlement of $151.32, up $4.50.