For the second straight week, managed money, a proxy for large commodity index funds, increased their collective net long live cattle futures position as hedgers reduced their total net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday, which chronicle’s trader groups’ holdings as of Tuesday.
MANAGED MONEY BUYS CATTLE
Tuesday, managed money had a collective net long live cattle position of 41,720 contracts, up 966, or 2.37%, from 40,754 a week earlier. It was their largest net long position since April 9 when it was 42,136 contracts.
At the same time, hedgers, called commercial traders, had a total net short live cattle position of 85,878 contracts, down 1,001, or 1.15%, from 86,879 a week earlier.
The CFTC said managed money arrived at their new cattle position by adding 1,145 long positions, 179 short positions and 289 spread positions. This left them in control of 23.2% of total long open interest, 7.8% of total short open interest and 14.4% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 12 long positions and covering 1,013 short positions, leaving them in possession of 15.1% of total long open interest and 46.7% of total short open interest.
The CFTC also said total live cattle open interest Tuesday was 271,875 contracts, down 902, or 0.33%, from 272,777 a week earlier.
CME Group data showed that the most-active Aug live cattle contract rose in value during the CFTC-reporting week to settle Tuesday at $176.12 per cwt, compared with $174.42 a week earlier.
FUNDS CONTINUE BUYING CORN
Tuesday, managed money had a total net short live cattle position of 61,290 contracts, down 32,487, ot 34.6%, from 93,777 a week earlier. It was their smallest net short position since Aug. 8, 2023, when it was 33,053 contracts.
Meanwhile, commercials had a total net short position of 196,539 contracts, up 17,317, or 9.66%, from 179,222 a week earlier. It was their largest net short position since Aug. 1, 2023, when it was 211,275 contracts.
The CFTC said managed money arrived at their new corn position by adding 20,972 long positions, covering 11,515 short positions and putting on 13,774 spread positions. This left them holding 14.8% of total long open interest, 18.8% of total short open interest and 14.5% of total spread open interest.
Commercials got to where they were by adding 4,015 long positions and 21,332 short positions, leaving them with 22.4% of total long open interest and 35.4% of total short open interest.
Total corn open interest was 1.513 million contracts, up from 1.447 million.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $184.00 per cwt to $189.528, compared with last week’s range of $184.00 to $188.84 per cwt. FOB dressed steers, and heifers went for $289.94 per cwt to $295.35, compared with $286.69 to $295.41.
The USDA choice cutout Friday was up $3.30 per cwt at $313.45 while select was up $0.89 at $297.00. The choice/select spread widened to $16.05 from $13.64 with 73 loads of fabricated product and 26 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $347.43 per cwt, and 50% beef was $73.51.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.36 to $1.46 a bushel over the Jul corn contract, which settled at $4.52 1/2 a bushel, down $0.04 1/2.
The CME Feeder Cattle Index for the seven days ended Thursday was $243.04 per cwt, up $0.71. This compares with Friday’s May contract settlement of $246.72, up $1.87.