Large commodity index firms, or managed money, cut their collective net long live cattle futures position in the week ended Tuesday as cattle owners reduced their total net long position.
That was from the weekly Commitments of Traders report by the Commodity Futures Trading Commission Friday.
FUNDS SELL CATTLE
Managed money, Tuesday, had a collective net long live cattle futures position of 41,656 contracts, down 3,609, or 7.97%, from 45,265 a week earlier. It was their smallest net long position since May 7 when it was 40,754 contracts.
At the same time, cattle owners, called commercial traders, had a total net short live cattle position of 81,935 contracts, down from 82,690 a week earlier. It was their smallest net short position since Jan. 23 when it was 74,636 contracts.
The CFTC said managed money arrived at their new live cattle position by liquidating 2,448 long positions, adding 1,161 short positions and putting on 1,649 spread positions. This left them in control of 21.5% of total long open interest, 7.1% of total short open interest and 16.3% of total spread open interest.
Commercials got to where they were by adding 2,132 long positions and 1,377 short positions, leaving them holding 14.5% of total long open interest and 442.7% of total short open interest.
The CFTC said total live cattle open interest Tuesday was 289,703 contracts, up 3,412, or 1.19%, from 286,291 a week earlier.
The most-active Oct live cattle contract rose during the CFTC-reporting week to settle at $179.40 per cwt, compared with $175.60.
FUNDS COVER SHORT CORN POSITIONS
Tuesday, managed money had a total net short corn position of 248,665 contracts, down 8,594, or 3.34%, from 257,259 a week earlier.
Commercials, meanwhile, had a total net short position of 43,581 contracts, up 24,136, or 124.1%, from 19,445 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 244 long positions, covering 8,838 short positions and unwinding 5,915 spread positions. This left them with 12.2% of total long open interest, 29.3% of total short open interest and 14.4% of total spread open interest.
Commercials got to their new position by liquidating 44,258 long positions and covering 20,122 short positions, leaving them holding 26.2% of total long open interest and 29.2% of total short open interest.
Total open interest Tuesday was 1.453 million contracts, down from 1.553 million a week earlier.
The most-active Dec contract settled Tuesday at $3.92 ¾ a bushel, down from $3.98 a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $183.00 per cwt to $186.22, compared with the previous week’s range of $185.00 to $196.79 per cwt. FOB dressed steers, and heifers went for $289.28 per cwt to $296.44, compared with $292.43 to $300.38.
The USDA choice cutout Friday was up $0.68 per cwt at $309.34 while select was down $0.37 at $295.82. The choice/select spread widened to $13.52 from $12.47 with 68 loads of fabricated product and 29 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $375.66 per cwt, and 50% beef was $125.01.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.48 to $1.58 a bushel over the Sep corn contract, which settled at $3.78 a bushel, up $0.06 1/4.
No live cattle contracts were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $242.95 per cwt, up $0.31. This compares with Friday’s Sep contract settlement of $240.47, up $0.97.