For the second straight week, large commodity investment funds, known as managed money, cut their combined net long position in live cattle futures in the week ended Tuesday, according to the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday.
Also, for the second straight week, commercial traders, those who theoretically could make or take delivery of a futures contract and tend to be hedgers, cut their collective net short live cattle position.
FUNDS GET LESS LONG CATTLE
As of Tuesday, managed money’s collective net long cattle position stood at 75,615 contracts, compared with 83,878 a week earlier, a decline of 8,263, or 9.85%.
At the same time, commercial traders’ new net short position came to 157,561 contracts, down 4,224, or 2.61%, from 161,785 a week earlier.
The CFTC said managed money arrived at their new cattle position by liquidating 6,521 long positions, adding 1,742 short positions and putting on 2,267 spread positions. This left their position representing 28.3% of total long open interest, 5.7% of total short open interest and 12.8% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 1,056 long positions and covering 5,280 short positions, leaving them in charge of 9.6% of total long open interest and 56.6% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 334,804 contracts, versus 335,778 a week earlier, a dip of 974, or 0.29%.
CME Group data showed that the most-active Apr futures contract declined in value during the CFTC reporting week to settle Tuesday at $119.42 per cwt from $121.20.
FUNDS LESS LONG CORN
In the same week, managed money cut their collective net long Chicago corn position to 330,839 contracts from 345,060 a week earlier. This was a decline of 14,221 contracts, or 4.12%. It was their lowest net long position since Feb. 2 when it was 322,309 contracts.
Commercials’ new net short position was 763,385 contracts, down 19,970, or 2.55%, from 783,355 a week earlier and their lowest since Jan. 19 when it was 762,409 contracts.
The CFTC said managed money arrived at their new cattle position by liquidating 10,321 long positions, adding 3,900 short positions and putting on 9,161 spread positions. This left them with 19.9% of total long open interest, 1.5% of total short open interest and 9.8% of total spread open interest.
Commercial traders got to where they were by liquidating 26,000 long positions and covering 45,970 short positions, leaving them with 26.5% of total long open interest and 68.9% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.799 million contracts, compare with 1.929 million a week earlier.
CATTLE, BEEF RECAP
Fed cattle trading last week was at $113 to $114 per cwt on a live basis, down $1 to $1.50 from the previous week. Dressed-basis trading was at $180, down $1 to $2.
The USDA choice cutout Friday was down $2.55 per cwt at $231.33, while select was off $0.83 at $220.85. The choice/select spread narrowed to $10.48 from $12.20 with 86 loads of fabricated product and 27 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 $1.05 to $1.07 a bushel over the May CBOT futures contract, which settled at $5.45 1/2 a bushel, up $0.13.
The CME Feeder Cattle Index for the seven days ended Thursday was $134.85 per cwt, down $1.22. This compares with Friday’s Mar contract settlement of $134.60 per cwt, down $0.50.