Ending a five-week push to a longer live cattle net long position, large investment funds lowered their exposure during the week ended Tuesday, the Commodity Futures Trading Commission said.
For the week ended Tuesday, the CFTC said Friday managed money, a proxy for those funds, lowered their net long live cattle position to 32,844 contracts from 42,578 the previous week. This was a drop of 9,734, or 22.9%. The previous week’s position was the largest since the week ended July 14.
In a similar fashion, commercial traders, those who theoretically could make or take delivery of a futures contract, ended a 12-week stretch of ever-increasing net short positions. The new net short position for these traders was 78,048 contracts, down 5,954, or 7.09%, from 83,992 the previous week, which was the largest net short position since the week ended July 21.
The CFTC said managed money arrived at its new position by liquidating 4,281 long positions and adding 5,453 short positions and unwinding 447 spread positions. This left them representing 21.0% of total long open interest and 9.8% of total short open interest.
Commercial traders arrived at their new positions by adding 1,978 long positions and covering 3,966 short positions to leave them in control of 16.5% of total long open interest and 63.1% of total short open interest.
Total open interest for the week declined 3,014 contracts, or 1.01%, to 294,364 from 297,378, the CME Group said.
During the latest reporting week, closing prices for the most-active Jun contract fell $1.57 per cwt to $134.85 from $136.42. At the time, the market was in a declining phase. Prices continued to fall until Thursday’s low of $131.02.
FUNDS GET LESS SHORT CORN
During the latest reporting week, managed money continued to get less short in their corn investments. The CFTC reported a net short position for these traders of 116,502 contracts, down 47,067, or 28.8%, from 163,659.
That was the third straight week of a declining short position for those traders.
At the same time, commercial traders increased their net short position by 34,768 contracts, or 19.5%, to 213,243 from 178,475.
The CFTC said managed money arrived at its new net short corn position by adding 3,197 long positions and covering 43,960 short positions while unwinding 4,292 spread positions. This left them representing 12.2% of total long open interest and 21.0% of total short open interest.
Commercial traders got to their new net short position by liquidating 1,303 long positions and adding 33,465 short positions, leaving them in control of 24.9% of total long open interest and 40.9% of total short open interest.
Total open interest during the latest CFTC week declined 10,112 contracts, or 0.76%, to 1.329 million from 1.339 million.
Corn markets at the time were waiting for the USDA’s Prospective Plantings report and were moving sideways to slightly higher. The most-active May contract rose $0.03 a bushel to $3.73 from $3.70.
CASH CATTLE MARKETS TRADE STEADY
Cash cattle markets last week traded at $132 to $133 per cwt on a live basis and $214 to $216 on a dressed basis. Both were about $3 below last week’s markets.
The USDA’s choice cutout price Friday was down $1.88 per cwt at $219.11, and select was off $3.55 at $206.93. The choice/select spread widened to $12.18 from $10.51 as 112 loads of fabricated product were sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $158.53 per cwt, up $0.27. This compares with the Apr CME settlement Friday of $156.20, down $0.87.