Large traders of live cattle futures slashed their positions in live cattle futures in the week ended last Tuesday, June 28, according to Friday’s weekly Commitments of Traders report from the Commodity Futures Trading Commission.
FUNDS LIQUIDATE CATTLE POSITIONS
Large commodity investment firms, known as managed money had a collective net long live cattle position last Tuesday of 19,110 contracts, down 13,962, or 42.2%, from 33,072 a week earlier. The selloff ended three straight weeks of increases and took their net position to its lowest point since June 7 when it was q6,270 contracts.
Commercial traders, those who own, or will own, the cattle, last Tuesday had a total net short live cattle position of 89,928 contracts, down 15,682, or 14.8%, from 105,610 a week earlier. It was their first week of position cuts in four weeks and took them to their lowest position since May 31 when it was 89,475 contracts.
The CFTC said managed money arrived at their new cattle position by liquidating 5,142 long positions, adding 8,820 short positions and putting on 1,704 spread positions. This left them with 25.4% of total long open interest, 18.6% of total short open interest and 8.8% of total spread open interest.
Commercials got to where they were last Tuesday by adding 4,862 long positions and covering 10,820 short positions, leaving them in charge of 15.2% of total long open interest and 47.3% of total short open interest.
The CME Group said total live cattle open interest last Tuesday was 1.338 million contracts, down 174,098, or 11.5%, from 1.512 million a week earlier.
The most-active Aug contract declined in value to settle last Tuesday at $132.72 per cwt, compared with $136.25 a week earlier.
FUNDS SELL CORN FUTURES
Meanwhile, managed money’s new net long Chicago corn futures position last Tuesday stood at 211,933 contracts, down from 241,691 a week earlier. It was their smallest net long position since Oct. 19, 2021, when it was 211,654 contracts.
Commercials Tuesday had a net short corn position of 537,593 contracts, down 56,724, or 9.54%, from 594,317 a week earlier. It was their smallest net short position since Oct. 26 when it was 495,877 contracts.
The CFTC said managed money arrive at their new corn position by liquidating 38,014 long positions, covered 8,256 short positions and unwound 9,185 spread positions. This left them in control of 19.7% of total long open interest, 3.8% of total short open interest and 8.8% of total spread open interest.
Commercials got to where they were by liquidating 65,533 long positions and covering 122,257 short positions, leaving them with 22.8% of total long open interest and 62.8% 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 $138.00 to $151.00 per cwt, compared with the previous week’s range of $139.00 to $147.09. FOB dressed steers, and heifers went for $217.54 to $229.38 per cwt, versus $216.47 to $225.02.
The USDA choice cutout Friday was down $0.18 per cwt at $263.82, while select was down $0.10 at $240.47. The choice/select spread narrowed to $23.35 from $23.43 with 82 loads of fabricated product and 19 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 $1.90 to $2.00 a bushel over the Jul futures, which closed at $7.54 ½ a bushel and for southwest Kansas were $0.10 under Sep, which settled at $6.19 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $165.67 per cwt down $0.77. This compares with Friday’s Aug contract settlement of $174.50, up $0.90.