Large commodity index funds expanded their collective net long live cattle futures position in the week ended Tuesday as traders with strong cash-market ties lengthened their total net short position, according to Friday’s weekly Commitments of Traders report.
The report came from the Commodity Futures Trading Commission telling of the positions of different classes of traders.
FUNDS BUY CATTLE
Tuesday, those funds, known as managed money, had a collective net long live cattle position of 136,592 contracts, up 18,563, or 15.7%, from 118,029 a week earlier. It marked their largest position since Feb. 4 when it was 152,303 contracts.
Meanwhile, cash-linked traders, called commercial traders, had a total net short live cattle position of 145,777 contracts, up 14,891, or 11.4%, from 130,886 a week earlier, scoring their largest net short position since Feb. 4 when it was 146,472 contracts.
Tuesday, managed money held 155,229 long cattle positions, or 38.7% of total open interest, a gain of 18,855 from a week earlier. They also had 18,637 short positions, of 4.6% of the total, a gain of 292 contracts, and 50,142 spread positions, or 12.5% of the total, a decline of 889.
Commercials, Tuesday, had 50,096 long cattle positions, or 12.5% of the total, a gain of 2,103 from a week earlier, and 195,873 short positions, or 48.8% of total open interest, a gain of 16,994.
The CFTC reported total live cattle open interest Tuesday at 401,304 contracts, up 28,544, or 7.66%, from 372,760 a week earlier.
The most-active Jun live cattle contract rose during the CFTRC-reporting week to settle at $202.32 per cwt, versus $201.00.
FUNDS SELL MORE CORN
For the fifth straight week, managed money reduced its collective net long corn futures position with a Tuesday position of 73,920 contracts, down from 104,430 a week earlier and their lowest since Dec. 3 when it was 73,239 contracts.
Similarly, commercials Tuesday had a total net short corn position of 423,146 contracts, down from 475,019 a week earlier, and their smallest position since Dec. 3 when it was 356,508 contracts.
Tuesday, managed money held 230,554 long corn positions, or 12.5% of total open interest, a decline of 13,141 from a week earlier. They also had 156,634 short positions, or 8.5% of the total, a gain of 17,369, and 346,383 spread positions, or 18.8% of the total, a decline of 6,310.
Commercials, Tuesday had 434,489 long positions, or 23,6% of total corn open interest, a gain of 27,801 from a week earlier. They also had 857,635 short positions, or 46.6% of the total, a decline of 24,066.
Total open interest was 1.842 million contracts, up from 1.819.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $202.49 per cwt to $214.41, compared with the previous week’s range of $199.50 to $210.11 per cwt. FOB dressed steers, and heifers went for $319.17 per cwt to $337.40, compared with $311.12 to $323.01.
The USDA choice cutout Friday was down $2.90 per cwt at $332.82 while select was off $0.76 at $318.68. The choice/select spread narrowed to $14.14 from $16.28 with 95 loads of fabricated product and 38 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $380.94 per cwt, and 50% beef was $116.90.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.20 to $1.32 a bushel over the May corn contract, which settled at $4.53 1/4, up $0.03 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $286.76 per cwt, down $0.86. This compares with Friday’s Apr contract settlement of $286.92, down $0.62.