Managed money, a proxy for large commodity investment firms, cut their collective net long live cattle futures position for the fourth straight week during the week ended last Tuesday, Sep. 21, according to the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
At the same time, those hedgers, known as commercial traders since they own the cattle at some point and can make or take delivery of a futures contract, cut their collective net short cattle position for the fourth straight week.
FUNDS LIQUIDATE CATTLE FUTURES
As of last Tuesday, managed money had a total net long cattle position of 32,656 contracts, down 10,682, or 24.6%, from 43,338 a week earlier. It was their lowest net long position since Nov. 10 when it was 25,720 contracts.
At the same time, commercial traders had a total net short cattle position of 123,071 contracts, down 7,378, or 5.66%, from 130,449 a week earlier. It was their lowest net short position since Jan. 19 when it was 121,133 contracts short.
The CFTC said managed money arrived at their new cattle position by liquidating 4,255 long positions, adding 6,427 short positions and unwinding 922 spread positions. This left their position representing 23.0% of total long open interest, 11.7% of total short open interest and 10.2% of total spread open interest.
Commercials got to where they were last Tuesday by adding 1,547 long positions and covering 5,831 short positions, leaving them holding 11.5% of total long open interest and 53.8% of total short open interest.
The CME Group said total live cattle open interest as of last Tuesday was 290,838 contracts, down 3,557, or 1.21%, from 294,395 a week earlier.
CME data also showed that the most-active Dec futures contract declined in value during the CFTC week to settle last Tuesday at $127.80 per cwt, compared with $129.67.
FUNDS BUY A LITTLE MORE CORN
Also as of last Tuesday, managed money had a collective net long corn position of 199,943 contracts, up 2,186, or 1.11%, from 197,757 a week earlier.
Meanwhile, commercials extended their total net short position to 453,769 contracts from 447,021 a week earlier, a gain of 6,748, or 1.51%.
The CFTC said managed money arrived at their new corn position by liquidating 2,466 long positions, covering 4,652 short positions and unwinding 3,204 spread positions. This left them in charge of 17.9% of total long open interest, 3.4% of total short open interest and 9.2% of total spread open interest.
Commercials liquidated 3,811 long positions and added 2,937 short positions.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $124.95 to $125.02 per cwt, compared with last week’s range of $123.98 to $126.80. FOB dressed steers and heifers went for $195.22 to $196.10 per cwt, versus $194.02 to $198.29.
The USDA choice cutout Monday was down $0.62 per cwt at $302.70, while select was off $0.15 at $274.38. The choice/select spread narrowed to $28.32 from $28.79 with 87 loads of fabricated product and 22 loads of trimmings and grinds sold into the spot market.
The USDA reported Monday that basis bids for corn from livestock feeding operations in the Southern Plains were unchanged at $1.65 to $1.85 a bushel over the Dec futures and for southwest Kansas were unchanged at $0.40 over Dec, which settled at $5.39 1/2 a bushel, up $0.12 3/4.
The CME Feeder Cattle Index for the seven days ended Friday was $154.87 per cwt up $0.89. This compares with Monday’s Sep contract settlement of $154.25 per cwt, down $0.37 and the Oct settlement of $154.77, down $2.57.