Large commodity investment funds, called managed money by traders, again liquidated long live cattle futures positions during the week ended Tuesday, the fifth straight week of liquidation.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday, which said managed money’s new collective net long live cattle position Tuesday stood at 11,962 contracts, down 18,350, or 60.5%, from 30,312 a week earlier. The new position also was down 73,430, or 86.0%, from the most-recent high of 85,392 contracts on Jan. 21.
At the same time, commercial traders, those who own the cattle and theoretically could make or take delivery of a futures contract, covered their net short positions aggressively. Their new collective net short live cattle position Tuesday stood at 113,443 contracts, down 17,174, or 13.1%, from 130,617 a week before and down 49,020, or 30.2%, from the most-recent high of 162,463 contracts on Jan. 21.
The CFTC said managed money arrived at their new cattle position by liquidating 7,310 long positions, adding 11,040 short positions and putting on 8,120 spread positions. This left their net position representing 17.3% of total long open interest, 13.8% of total short open interest and 17.9% of total spread open interest.
Commercial traders reached their new cattle position by adding 4,635 long positions and covering 12,539 short positions, leaving them holding 13.1% of total long open interest and 45.8% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday stood at 347,268 contracts, up 8,836, or 2.61%, from 338,432 the previous week.
The CME Group also showed that the most-active Apr futures contract fell during the week to close Tuesday at $112.95 per cwt, compared with $120.60 a week earlier.
FUNDS SHORTEN CORN POSITION
Meanwhile, managed money increased its net short Chicago corn position in the week ended Tuesday, taking it to its largest point for 2 ½ months. The new net short corn position Tuesday was 88,157 contracts, up 31,302, or 55.1%, from 56,855 the previous week.
At the same time, commercial traders cut their net short corn position by 33,118 contracts, or 12.3%, to 235,783 from 268,901 the week before.
The CFTC said managed money arrived at its new short corn position by adding 13,294 long positions, 44,596 short positions and unwinding 12,032 spread positions. This left them in control of 13.0% of total long open interest, 18.6% of total short open interest and 15.4% of total spread open interest.
Commercials got to where they were by adding 7,756 long positions and covering 25,362 short positions. This left them holding 26.3% of total long open interest and 41.1% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.585 million contracts, down 18,791, or 1.17%, from 1.603 million a week earlier.
CATTLE, BEEF RECAP
Cash cattle traded last week at $115 to $119 per cwt on a live basis, down $1 to $4 from the previous week and at $186 to $187 on a dressed basis, down $3.
The USDA choice cutout Friday was down $0.24 per cwt at $205.30, while select was down $0.78 at $198.91. The choice/select spread widened to $6.39 from $5.85 with 73 loads of fabricated product sold into the spot market.
No futures contracts were tendered for delivery Friday against the Feb futures contract.
The CME Feeder Cattle index for the seven days ended Thursday was $135.60 per cwt, down $2.43 from the previous day. This compares with Friday’s Mar contract settlement of $131.27, down $1.30.