Managed money, a proxy for large investment funds, expanded their net long live cattle futures positions during the week ended Tuesday to their highest point in more than a year as commercial traders enlarged their net short positions to their largest in more than 12 months.
The Commodity Futures Trading Commission made the announcement in its weekly Commitments of Traders report Friday, saying managed money’s new net long position was 115,790 contracts, up 976, or 0.85%, from 114,814 the previous week. It was the fourth straight week of increase.
At the same time, commercial traders, those who theoretically could make or take delivery of a futures contract, grew their net short position for the fourth straight week to 185,573 contracts, up 3,106, or 1.70%, from 182,467.
Swap dealers, those who facilitate cash and over-the-counter trades, expanded their net long position to their longest in more than a year, going up 3,326 contracts, or 3.52%, to 97,425 from 94,099 the week before.
The CFTC said managed money arrived at its new cattle position by adding 1,949 long positions against 973 short positions while unwinding 5,571 spread positions. This left them representing 32.9% of total long open interest, 3.3% of total short open interest and 7.0% of total spread open interest.
Commercials got to their new position by adding 1,383 new long positions against 4,489 new short positions, leaving them in control of 6.9% of total long open interest and 54.4% of total short open interest.
Swap dealers found their new position by adding 3,759 new long positions and 433 short positions, while unwinding 740 spread positions. This left them holding 26.2% of total long open interest, 1.2% of total short open interest and 0.5% of total spread open interest.
The CME Group said total live cattle open interest during the week ended Tuesday rose 2,031 contracts, or 0.52%, to 390,790 from 388,759.
During the CFTC reporting week, the most-active Jun live cattle futures contract continued to move lower, closing down $2.30 per cwt, or 2.06%, at $109.30 from $111.60. It since has set a swing low at $108.67 on Wednesday.
FUNDS LIGHTEN CORN SHORTS
Meanwhile, managed money lightened its net short corn futures position, going down 10,039 contracts, or 6.61%, to 141,759 from 151,798.
Commercial traders expanded their net short position by 8,847 contracts, or 5.34%, to 174,607 from 165,760.
The CFTC said managed money arrived at its new position by liquidating 4,151 long positions and covering 14,190 short positions while adding 3,496 spread positions. This left them representing 13.1% of total long open interest, 22.9% of total short open interest and 7.8% of total spread open interest.
Commercial traders added 18,900 long positions and 27,747 short positions, leaving them in control of 25.6% of total long open interest and 37.6% of total short open interest.
CASH CATTLE QUIET
No cattle traded on the weekly fed cattle exchange auction Wednesday. The previous week, average auction prices were $2.34 per cwt lower at $130.97, versus $133.31 a week earlier.
Little cash cattle trade was reported last week. Prices were reported at $120 to $122 per cwt on a live basis in Nebraska and Iowa, but $125 bids were rebuffed elsewhere. Asking prices were $130 live and $208 dressed.
The USDA’s choice cutout Friday was down $0.68 per cwt at $207.22, while select was off $2.79 at $197.49. The choice/select spread widened to $9.73 from $7.62 with 114 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $132.96 per cwt, down $0.25. This compares with the Apr settlement Friday of $133.75, up $1.80.