Large commodity index funds, or managed money, decreased their collective net long live cattle futures positions in the week ended Tuesday.
In its weekly Commitments of Traders report Friday, the Commodity Futures Trading Commission also said hedgers covered part of their total net short positions during its reporting week.
MANAGED MONEY SELLS CATTLE POSITIONS
Tuesday, managed money had a collective net long live cattle futures position of 58,348 contracts, down 21,045, or 26.5%, from 79,393 a week earlier.
At the same time, hedgers, or commercial traders since they deal in commercial, or cash, markets, had a total net short live cattle position of 91,902 contracts, down 8,541, or 8.50%, from 100,443 a week earlier.
The CFTC said managed money arrived at their new cattle position by liquidating 20,237 long positions, adding 808 short positions and unwinding 9,252 spread positions. This left them in possession of 26.2% of total long open interest, 6.0% of total short open interest and 16.0% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 5,077 long positions and covering 13,618 short positions, leaving them with 11.2% of total long open interest and 43.0% of total short open interest.
The CFTC said total live cattle open interest at the CME Tuesday was 289,099 contracts, down 39,937, or 12.1%, from 329,036 a week earlier.
CME Group data showed the most-active Oct live cattle contract declined in value during the CFTC-reporting week to settle Tuesday at $179.05 per cwt, compared with $187.45 a week earlier.
MANAGED MONEY COVERS CORN POSITIONS
Tuesday, managed money had a total net short Chicago corn position of 248,804 contracts, down 51,506, or 17.2%, from 300,310 a week earlier.
Commercial traders Tuesday had a total net short position of 42,727 contracts, up 38,762, or 977.6%, from 3,965 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 14,757 long positions, covering 36,749 short positions and unwinding 1,459 spread positions. This left them holding 10.8% of total long open interest, 26.6% of total short open interest and 14.4% of total spread open interest.
Commercials got to where they were by liquidating 14,493 long positions and adding 24,169 short positions, leaving them with 27.6% of total long open interest and 30.3% of total short open interest.
The CFTC also said total corn open interest Tuesday was 1.578 million contracts, down from 1.598 million a week earlier.
The most-active Dec contract rose during the CFTC-reporting week to settle at $4.05 ¼ a bushel, compared with $4.05 a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $188.00 per cwt to $197.25, compared with the previous week’s range of $188.53 to $200.62 per cwt. FOB dressed steers, and heifers went for $295.76 per cwt to $307.71, compared with $296.77 to $310.09.
The USDA choice cutout Friday was up $0.59 per cwt at $312.71 while select was up $0.56 at $298.59. The choice/select spread widened to $14.12 from $14.09 with 92 loads of fabricated product and 16 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $373.50 per cwt, and 50% beef was $170.03.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.45 to $1.60 a bushel over the Sep corn contract, which settled at $3.76 3/4 a bushel, down $0.02 1/2.
No live cattle contracts were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $249.71 per cwt, down $3.13. This compares with Friday’s Aug contract settlement of $246.50, down $4.12.