Large commodity index funds, otherwise known as managed money, cut their collective net long live cattle futures position in the week ended Tuesday for the fourth straight week.
Hedgers, called commercial traders, followed suit, cutting their total net short live cattle position for the fourth straight week.
The information came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS GETTING OUT OF CATTLE
The report showed that managed money’s net long live cattle position Tuesday was 14,026 contracts, down 9,401, or 40.1%, from 23,427 a week earlier. It was their smallest net long position since Oct. 26, 2020, when it was 13,650 contracts.
Commercial traders, those who own, or will own, the cattle, had a total net short position Tuesday of 92,766 contracts, down from 101,376 a week earlier. It was their smallest net short position since Nov. 2, 2020, when it was 92,137 contracts.
The CFTC said managed money arrived at their new cattle position by liquidating 5,145 long positions, adding 4,256 short positions and unwinding 3,947 spread positions. This left them holding 23.7% of total long open interest, 19.0% of total short open interest and 9.2% of total spread open interest.
Commercials got to where they were by adding 3,767 long positions and covering 4,843 short positions, leaving them with 16.4% of total long open interest and 47.7% of total short open interest.
The CME Group said live cattle open interest Tuesday totaled 296,222 contracts, down 4,95, or 1.46%, from 300,617 a week earlier.
CME data also showed that the most-active Aug cattle contract settled Tuesday at $132.75 per cwt, down from $133.47 a week earlier. In between, it set a new cycle low of $131.00 on Monday.
FUNDS TRIM LONG CORN POSITION
Tuesday, managed money had a collective net long Chicago corn position of 267,491 contracts, down 44,874, or 14.4%, from 312,365 a week earlier.
Commercials Tuesday had a total net short corn position of 663,614 contracts, down 60,284, or 8.33%, from 723,898 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 26,450 long positions, adding 18,254 short positions and putting on 18,254 spread positions. This left them in charge of 22.0% of total long open interest, 4.7% of total short open interest and 8.3% of total spread open interest.
Commercials got to where they were by adding 14,091 long positions and covering 46,193 short positions, leaving them with 21.6% of total long open interest and 64.6% of total short open interest.
The CME said total corn open interest Tuesday was 1.545 million contracts, down from 1.548 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 $138.39 to $143.18 per cwt, compared with the previous week’s range of $140.00 to $144.52. FOB dressed steers, and heifers went for $216.86 to $220.73 per cwt, versus $219.21 to $225.67.
The USDA choice cutout Friday was up $1.45 per cwt at $265.42, while select was up $2.07 at $246.50. The choice/select spread narrowed to $18.92 from $19.54 with 64 loads of fabricated product and 42 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 unchanged at $1.55 to $1.65 a bushel over the Jul futures and for southwest Kansas were steady at even the Jul, which settled at $7.77 1/4 a bushel, up $0.12 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $154.72 per cwt up $0.92. This compares with Friday’s Aug contract settlement of $166.32, down $0.35.