Large commodity index funds, known as managed money, cut their collective net long live cattle position about 3% during the week ended Tuesday while hedgers trimmed their total net short positions by 0.2%.
The data from the Commodity Futures Trading Commission came from the weekly Commitments of Traders Report Friday.
FUNDS CUT LIVE CATTLE POSITIONS
As of Tuesday, managed money had a collective net long cattle position of 36,937 contracts, down 1,057, or 2.78%, from 37,994 a week earlier. It was their smallest total net long position since Nov. 2 when it was 34,030 contracts.
Hedgers, also known as commercial traders, Tuesday had a total net short position of 117,098 contracts, down 215, or 0.18%, from 117,313 a week earlier. It was their smallest net short position since March 22 when it was 114,340 contracts.
The CFTC said managed money arrived at their collective net long cattle position by adding 3,987 long positions, 5,044 short positions and 2,715 spread positions. This left them in control of 25.9% of total long open interest, 14.0% of total short open interest and 8.4% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 2,092 long positions and covering 2,307 short positions, leaving them holding 15.0% of total long open interest and 53.0% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 308,227 contracts, up 5,516, or 1.82%, from 302,711 a week earlier.
The most-active Jun cattle contract rose in value during the CFTC week, closing Tuesday at $136.30 per cwt, compared with $133.33 the previous Tuesday.
FUNDS BOOST CORN POSITIONS
At the same time, managed money had a total Chicago corn position Tuesday of 356,877 contracts, up 7,773, or 2.23%, from 349,104 a week earlier.
Commercials Tuesday had a net short corn position of 745,355 contracts, up 15,734, or 2.16%, from 729,621 a week earlier.
The CFTC said managed money arrived at their new net long corn position by adding 8,052 long positions, 279 short positions and unwinding 11,098 spread positions. This left them with 23.4% of total long open interest, 0.9% of total short open interest and 5.9% of total spread open interest.
Commercials got to where they were by adding 18,863 long positions and 34,597 short positions, leaving them in control of 24.1% of total long open interest and 70.9% of total short open interest.
The CME Group said total corn open interest Tuesday stood at 1.590 million contracts, up 33,642, or 2.16%, from 1.556 million a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $137.84 to $141.52 per cwt, compared with the previous week’s range of $138.00 to $141.00. FOB dressed steers, and heifers went for $216.67 to $220.09 per cwt, versus $217.13 to $221.25.
The USDA choice cutout Friday was up $0.76 per cwt at $272.62, while select was off $0.81 at $258.90. The choice/select spread widened to $13.72 from $12.15 with 57 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The USDA reported that basis bids for corn from feeders in the Southern Plains were steady at $1.45 to $1.55 a bushel over the May futures and for southwest Kansas were unchanged at $0.10 over May, which settled at $7.90 1/4 a bushel, up $0.06 3/4.
No live cattle contracts were tendered for delivery Thursday.
The CME Feeder Cattle Index for the seven days ended Wednesday was $155.95 per cwt up $0.05. This compares with Thursday’s Apr contract settlement $158.20, down $0.35.