Large commodity index firms, known as managed money, further advanced their collective net long live cattle futures position in the week ended last Tuesday, May 30, while hedgers nudged their total net short position a little higher.
That from the Commitments of Traders report from the Commodity Futures Trading Commission. The report usually is released on Friday with data through the previous Tuesday, but it was delayed by the observance of the Memorial Day holiday.
FUNDS BUY MORE CATTLE
Tuesday, managed money had a combined net long live cattle position of 105,326 contracts, up from 101,040 a week earlier for a gain of 4,286, or 4.24%. It was their second straight week of gains.
At the same time, hedgers, or commercial traders, since they own, or will own, the cattle, had a total net short live cattle position Tuesday of 139,733 contracts, up 1,037, or 0.75%, from 138,696 a week earlier.
The CFTC said managed money arrived at their new cattle position by adding 1,174 long positions, covering 3,312 short positions and unwinding 1,965 spread positions. This left then with 35.8% of total long open interest, 3.8% of total short open interest and 13.4% of total spread open interest.
Commercial traders got to where they were Tuesday by adding 991 long positions and 2,028 short positions, leaving them with 10.6% of total long open interest and 53.1% of total short open interest.
The CME Group said total live cattle futures open interest Tuesday was 327,088 contracts, down 5,007, or 1.51%, from 332,095 a week earlier.
CME data also showed the most-active Aug futures contract rose during the CFTC-reporting week to settle last Tuesday at $167.17 per cwt, compared with $162.57 a week earlier.
FUNDS ALSO BUY CORN
In addition to cattle, managed money bought Chicago corn futures in the week ended last Tuesday, coming in with a combined net short position of 46,846 contracts, down 50,803, or 52.0%, from 97,649 a week earlier.
Meanwhile, commercial traders had a total net short position of 172,616 contracts, up 43,279, or 33.5%, from 129,337 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 3,182 long positions, covering 47,621 short positions and putting on 3,383 spread positions. This left them with 13.3% of total long open interest, 16.9% of total short open interest and 8.2% of total spread open interest.
Commercial traders got to where they were by liquidating 3,558 long positions and adding 39,721 short positions, leaving them in charge of 30.3% of total long open interest and 43.4% of total short open interest.
The CME Group said total corn open interest last Tuesday was 1.328 million contracts, compared with 1.295 million a week earlier.
The most-active Jul contract settled at $5.94 a bushel versus $5.77 ½.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $171.68 per cwt to $183.03, compared with last week’s range of $169.74 to $183.99 per cwt. FOB dressed steers, and heifers went for $267.34 per cwt to $280.26, compared with $268.57 to $278.21.
The USDA choice cutout Monday was up $4.26 per cwt at $314.19 while select was up $5.80 at $296.73. The choice/select spread narrowed to $17.46 from $19.00 with 66 loads of fabricated product and 32 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were down $0.03 at $1.65 to $1.75 a bushel over the Jul corn contract, which settled at $5.97 1/2 a bushel, down $0.11 1/2.
No deliveries were tendered against Jun live cattle Monday.
The CME Feeder Cattle Index for the seven days ended Friday was $216.12 per cwt, up $8.08. This compares with Monday’s Aug contract settlement of $242.60 per cwt, up $0.70.