Large commodity index funds, called managed money, edged back into net long territory during the week ended Tuesday but not by much, according to the weekly Commitments of Traders report from the Commodity Futures Trading Commission.
The new net long position by managed money as of Tuesday amounted to 83,000 contracts, compared with a net short position of 2,355 contracts a week earlier. Managed money hadn’t had a net long live cattle position since Feb. 25 when it was long by 11,962 contracts.
Commercial traders, those who own the cattle at some point in their lives and usually are hedgers in the futures market, took on a larger net short position in the week ended Tuesday. The new position was short by 92,797 contracts, up 4,553, or 5.16%, from 88,244 a week earlier.
The CFTC said managed money arrived at their new net long cattle position by adding 915 long positions, covering 1,523 short positions and putting on 5,612 new spread positions. This left their position representing 14.3% of total long open interest, 14.3% of total short open interest and 13.8% of total spread open interest.
Commercials got to where they were by liquidating 6,359 long positions and covering 1,806 short positions, leaving them in charge of 15.1% of total long open interest and 50.1% of total short open interest.
The CMR Group said total live cattle open interest as of Tuesday was 265,312 contracts, down 75, or 0.03%, from 265,387 a week earlier.
CME Group data also showed that the most-active Jun contract declined during the CFTC reporting week, ending at $83.80 per cwt, down from $84.80 a week earlier. However, in between, it rose to a swing high of $89.25 on Wednesday.
FUNDS GET SHORTER CORN
At the same time, managed money took on a larger net short position in Chicago corn futures, ending Tuesday being net short by 137,294 contracts, up 27,074, or 24.6%, from 110,220 a week earlier. It was their largest net short position since Sep. 24 when it was short by 162,551 contracts, and managed money hasn’t held a net long corn position since Aug.14 when they were long by 21,527 contracts.
Commercials Tuesday held a collective net short position of 107,798 contracts, down 15,334, or 12.5$, from 123,132 a week earlier. It was their smallest net short position since May 14, 2019, when it was short by 21,856 contracts.
The CFTC said managed money arrived at their new short cattle position by liquidating 2,014 long positions, adding 25,060 short positions and putting on 21,399 spread positions. This left their short position representing 8.4% of total long open interest, 18.0% of total short open interest and 13.1% of total spread open interest.
Commercials got to their new position by liquidating 7,969 long positions and covering 23,303 short positions. This left them in charge of 34.9% of total long open interest and 42.4% of total short open interest.
CATTLE, BEEF RECAP
Cash cattle trade was reported in the Plains last week at $105 per cwt on a live basis, steady with the previous week, and at $150 to $168 dressed, steady to down $18.
The USDA choice cutout Friday was up $3.12 per cwt at $238.99, while select was up $1.22 at $227.20. The choice/select spread widened to $11.79 from $9.89 with 74 loads of fabricated product sold into the spot market.
There were no deliveries against the Apr futures contract tendered on Friday.
The CME Feeder Cattle index for the seven days ended Thursday was $115,75 per cwt, up $1.19. This compares with Friday’s Apr contract settlement of $119.52, up $1.27.