Managed money, those large commodity index funds, cut their collective net long live cattle futures position for the fifth straight week in the week ended Tuesday as hedgers continued to trim their net short position.
The data came from the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday.
FUNDS CUT LONG CATTLE POSITION
Managed money’s new net long live cattle futures position Tuesday totaled 26,898 contracts, down 5,758, or 17.6%, from 32,656 a week earlier. This was their lowest net long cattle position since Nov. 10, 2020, when it was 25,720 contracts.
Hedgers, better known as commercial traders, those who own the cattle at some point, had a collective net short cattle position Tuesday of 119,611 contracts, down 3,460, or 2.81%, from 123,071 a week earlier. This was their smallest net short position since Jan. 12 when it was 118,710 contracts.
The CFTC said managed money arrived at their new net long cattle position by liquidating 1,803 long positions, adding 3,955 short positions and putting on 773 new spread positions. This left them with 22.2% of total long open interest, 13.0% of total short open interest and 10.5% of total spread open interest.
Commercials got to where they were Tuesday by adding 1,399 long positions and covering 2,061 short positions, leaving them with 11.9% of total long open interest and 52.9% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 294,119 contracts, up 3,281, or 1.13%, from 290,838 a week earlier.
CME Group data also showed that the most-active Dec contract’s price declined during the CFTC reporting week to settle Tuesday at $127.50 per cwt, compared with $127.80 but hit a nearby high Thursday of $129.32.
FUNDS GET LONGER CORN
Meanwhile, managed money took on a larger net long Chicago corn position during the CFTC reporting week, coming out Tuesday at 235,044 contracts, up 35,101, or 17.6%, from 199,943.
Commercials’ new net short corn position Tuesday totaled 464,532 contracts, up 10,763, or 2.38%, from 453,769 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 21,714 long positions, covering 13,387 short positions and unwinding 5,383 spread positions. This left them with 19.2% of total long open interest, 2.4% of total short open interest and 8.7% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 1,559 long positions and adding 9,204 short positions, leaving them in control of 28.1% of total long open interest and 61.4% 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 $123.68 to $125.06 per cwt, compared with the previous week’s range of $123.98 to $126.80. FOB dressed steers and heifers went for $194.31 to $196.10 per cwt, versus $194.02 to $198.29.
The USDA choice cutout Friday was down $2.62 per cwt at $292.36, while select was off $4.48 at $264.84. The choice/select spread widened to $27.52 from $25.66 with 85 loads of fabricated product and 29 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.20 to $1.35 a bushel over the Dec futures and for southwest Kansas were unchanged at $0.40 over Dec, which settled at $5.41 1/2 a bushel, up $0.04 1/2.
The CME Feeder Cattle Index for the seven days ended Thursday was $153.72 per cwt down $0.06. This compares with Friday’s Oct contract settlement of $152.75 per cwt, up $0.20.