Large commodity index funds, otherwise known as managed money, bought live cattle futures contracts during the week ended last Tuesday, Aug. 15, while hedgers continued to sell short, according to the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
For both trader types, it was the fourth straight week of such moves.
FUNDS BUY CATTLE
Tuesday, managed money had a collective net long live cattle position of 88,301 contracts, up 10,337, or 13.3%, from 77,964 a week earlier. It was their largest net long position in more than a year.
Hedgers, also known as commercial traders because of their involvement in commercial, or cash, markets, Tuesday had a total net short live cattle position of 114,710 contracts, up 3,865, or 3.49%, from 110,845 a week earlier. It was their largest net short position in more than a year.
The CFTC said managed money arrived at their new cattle position by adding 7,891 long positions, covering 2,446 short positions and putting on 468 new spread positions. This left them holding 31.7% of total long open interest, 4.5% of total short open interest and 14.2% of total spread open interest.
Commercials reached their new cattle position by liquidating 473 long positions and adding 3,392 short positions, leaving them in charge of 11.7% of total long open interest and 47.0% of total short open interest.
The CFTC also said total live cattle open interest last Tuesday was 324,432 contracts, up 5,673, or 1.78%, from 318,759 a week earlier.
CME Group data show that the most-active Dec live cattle contract declined in value during the CFTC-reporting week to settle last Tuesday at $186.52 per cwt, compared with $187.87.
FUNDS RESUME SELLING CORN
Last Tuesday, managed money had a collective net short corn position of 107,448 contracts, up 72,594, or 208.3%, from 34,854 a week earlier.
Meanwhile, commercials had a total net short position of 172,711 contracts, down 53,790, or 23.7%, from 226,501 a week earlier.
The CFTC said managed money got to its new corn position by liquidating 14,100 long positions, adding 58,494 short positions and unwinding 7,692 spread positions. This left them with 12.3% of total long open interest, 19.2% of total short open interest and 15.6% of total spread open interest.
Commercials reached their new position by adding 57,502 long positions and 3,712 short positions, leaving them holding 27.8% of total long open interest and 38.9% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $187.95 per cwt to $187.95, compared with last week’s range of $187.00 to $189.35 per cwt. FOB dressed steers, and heifers went for $293.93 per cwt to $294.30, compared with $292.16 to $298.16.
The USDA choice cutout Monday was up $2.21 per cwt at $322.86 while select was up $2.01 at $296.21. The choice/select spread widened to $26.65 from $26.45 with 95 loads of fabricated product and 23 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $352.78 per cwt, and 50% beef was $65.77.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.25 to $1.40 a bushel over the Dec corn contract and in Kansas at $0.25 over Dec, which settled at $4.09 1/2 a bushel, up $0.04 3/4.
No new contracts were tendered for delivery Monday against the Oct contract.
The CME Feeder Cattle Index for the seven days ended Friday was $250.26 per cwt, down $0.54. This compares with Monday’s Oct contract settlement of $247.57, down $0.75.