During the week ended last Tuesday, June 18, large commodity index funds, known as managed money, expanded their collective net long live cattle position, while hedgers added to their total net short position.
The data came from the Commitments of Traders report from the Commodity Futures Trading Commission, which usually is published on Fridays but was delayed until Monday by the observance last week of the Juneteenth holiday.
FUNDS EXPAND LONG POSITION
As of last Tuesday, managed money had a collective net long live cattle position of 54,953 contracts, up 1,882, or 3.55%, from 53,071 a week earlier, reversing direction from a sell-off two weeks ago.
At the same time, hedgers, known mostly as commercial traders, since they deal primarily in a commercial market that handles the actual cattle represented by a futures contract, had a total net short position of 93,733 contracts, up 2,650, or 2.91%, from 91,083 a week earlier.
The CFTC said managed money arrived at their new cattle position by adding 3,395 long positions, 513 short positions and 4,739 spread positions. This left them with 26.8% of total long open interest, 7.2% of total short open interest and 13.6% of total spread open interest.
The CFTC also said commercial traders gained their new position by liquidating 2,221 long positions and adding 429 short positions, leaving them in charge of 13.7% of total long open interest and 46.6% of total short open interest.
CFTC data showed that total live cattle open interest last Tuesday was 1.567 million contracts, down 33,000, or 2.06%, from 1.600 million a week earlier.
CME Group data showed the most-active Aug live cattle contract rose in value during the CFTC-reporting week to settle last Tuesday at $182.10 per cwt, versus $178.92 a week earlier.
FUNDS REDUCE SHORT CORN POSITION
Meanwhile, managed money had a collective net short Chicago corn position Tuesday of 209,334 contracts, down 10,658, or 4.84%, from 219,992 a week earlier.
And commercial traders Tuesday had a total net short position of 115,834 contracts, up 16,538, or 16.7%, from 99,296 a week earlier.
The CFTC said managed money arrived at their new position by adding 3,145 long positions, covering 7,513 short positions and unwinding 29,263 spread positions. This left them in possession of 13.2% of total long open interest, 26.5% of total short open interest and 13.5% of total spread open interest.
Commercials got to their new position by liquidating 5,006 long positions and adding 11,532 short positions, leaving them with 25.5% of total long open interest and 32.9% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $191.98 per cwt to $192.56, compared with last week’s range of $186.00 to $198.26 per cwt. FOB dressed steers, and heifers went for $298.83 per cwt to $301.88, compared with $291.73 to $303.78.
The USDA choice cutout Monday was up $0.25 per cwt at $322.64 while select was up $1.96 at $305.07. The choice/select spread narrowed to $17.57 from $19.28 with 83 loads of fabricated product and 25 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $363.67 per cwt, and 50% beef was $92.25.
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 $4.33 1/2 a bushel, down $0.01 1/2.
No delivery intentions were posted Monday for the Jun live cattle futures contract.
The CME Feeder Cattle Index for the seven days ended Friday was $258.34 per cwt, up $0.87. This compares with Monday’s Aug contract settlement of $258.90, up $0.52.