For the fifth straight week, managed money, a moniker for large commodity investment funds, increased their collective net long position in live cattle futures, according to data released by the Commodity Futures Trading Commission Friday.
That same report, the weekly Commitments of Traders Report, with chronicles the activity of various trading groups on the previous Tuesday, said cattle hedgers advanced their total net short position for the fourth straight week.
MANAGED MONEY BUYS CATTLE
As of Tuesday, managed money had a collective net long live cattle position of 61,762 contracts, up 12,199, or 24.6%, from 49,563 a week earlier. It was their largest net long position since March 26 when it was 65,711 contracts.
At the same time, hedgers, called commercial traders for their connection to the cattle being traded in the futures market, had a total net short live cattle position of 97,851 contracts, up 7,524, or 8.33%, from 90,327 a week earlier. It was their largest net short position since April 2 when it was 102,200 contracts.
The CFTC said managed money arrived at their new live cattle position by adding 10,500 long positions, covering 1,699 short positions and unwinding 26 spread positions. This left them holding 27.7% of total long open interest, 6.6% of total short open interest and 13.3% of total spread open interest.
Commercials got to where they were by adding 1,069 long positions and 8,593 short positions, leaving them in charge of 13.8% of total long open interest and 47.3% of total short open interest.
The CFTC also said total live cattle open interest Tuesday was 292,515 contracts, down 14,090, or 5.06%, from 278,426 a week earlier.
CME Group data showed the most-active Aug contract rose in value during the DFTC-reporting week to settle Tuesday at $181.82 per cwt, compared with $180.42 a week earlier.
FUNDS SELL CORN
Also on Tuesday, managed money had a collective net short Chicago corn position of 131,820 contracts, up 16,175, or 14.0%, from 115,645 a week earlier.
Commercial traders had a total net short corn position of 144,094 contracts, down 17,929, or 11.1%, from 162,023 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 1,867 long positions, 18,042 short positions and 7,763 spread positions. This left them with 13.9% of total long open interest, 22.4% of total short open interest and 22.4% of total spread open interest.
Commercials got to where they were by adding 2,024 long positions, covering 15,905 short positions and unwinding 1,316 spread positions, leaving them with 23.3% of total long open interest and 32.6% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $186.77 per cwt to $192.34, compared with the previous week’s range of $184.00 to $194.17 per cwt. FOB dressed steers, and heifers went for $293.35 per cwt to $302.05, compared with $289.67 to $300.73.
The USDA choice cutout Friday was down $0.84 per cwt at $313.20 while select was off $0.81 at $301.71. The choice/select spread narrowed to $11.50 from $11.52 with 108 loads of fabricated product and 19 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $353.08 per cwt, and 50% beef was $77.21.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.38 to $1.50 a bushel over the Jul corn contract, which settled at $4.46 1/4 a bushel, down $0.02 1/2.
The CME Feeder Cattle Index for the seven days ended Thursday was $248.24 per cwt, down $1.04. This compares with Friday’s Aug contract settlement of $256.40, down $2.67.