5-1-24 – Managed money, a proxy for large commodity index funds, enlarged their collective net long live cattle futures position during the week ended Tuesday while cattle hedgers cut their total net short position.
The information came from the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday. It chronicles the relative positions of four classes of traders.
MANAGED MONEY ENLARGES LONG POSITION
As of Tuesday, managed money had a collective net long cattle position of 61,706 contracts, up 5,753, or 10.3%, from 55,953 a week earlier.
At the same time, hedgers, or commercial traders, since they deal more in the cash market than managed money, sported a total net short live cattle position of 88,965 contracts, down 4,768, or 5.09%, from 93,733 a week earlier.
The CFTC said managed money arrived at their new cattle position by adding 6,262 long positions, 509 short positions and 3,441 spread positions. This left them holding 27.8% of total long open interest, 7.0% of total short open interest and 14.1% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 1,205 long positions and covering 5,973 short positions, leaving hem in charge of 12.7% of total long open interest and 42.6% of total short open interest.
The CFTC also said total live cattle open interest Tuesday was 297,676 contracts, up 12,785, or 4.49%, from 284,891 a week earlier.
CME Group data showed that the most-active Aug contract rose in value during the CFTC-reporting week to settle Tuesday at $184.42 per cwt, compared with $182.80 a week earlier.
FUNDS SELL CORN
As of Tuesday, managed money had a collective net short Chicago corn position of 296,251 contracts, up 86,917, or 41.5%, from 209,334 a week earlier. It was their largest net short position since Feb. 20 when it was 328,584 contracts.
Commercials had a total net short position of 32,986 contracts, down 82,848, or 71.5%, from 115,834 a week earlier. It was their smallest net short position since April 16 when it was 16,111 contracts.
The CFTC said managed money arrived at their new position by liquidating 25,483 long positions, adding 61,434 short positions and unwinding 18,204 spread positions. This left them holding 11.9% of total long open interest, 31.4% of total short positions and 12.7% of total spread positions.
Commercials got to where they were by adding 2,910 long positions and covering 79,938 short positions, leaving them with 26.5% of total long open interest and 28.7% of total long open interest.
The most-active Dec contract declined during the week.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $190.00 per cwt to $198.30, compared with the previous week’s range of $186.00 to $198.26 per cwt. FOB dressed steers, and heifers went for $295.27 per cwt to $308.27, compared with $291.73 to $303.78.
The USDA choice cutout Friday was up $2.99 per cwt at $326.32 while select was up $1.80 at $304.50. The choice/select spread widened to $21.82 from $20.63 with 73 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $379.30 per cwt, and 50% beef was $106.51.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.50 to $1.60 a bushel over the Jul corn contract, which settled at $3.97 1/4 a bushel, down $0.16 1/2.
No delivery intentions were posted Friday for the Jun live cattle futures contract.
The CME Feeder Cattle Index for the seven days ended Thursday was $258.60 per cwt, down $0.44. This compares with Friday’s Aug contract settlement of $259.30, down $1.35.