Funds Hold Live Cattle Net Long Position Steady

Commodity funds, or managed money, all but kept their net long live cattle position in place during the week ended Tuesday, while commercial traders cut their net short position significantly.

The Commodity Futures Trading Commission, in its Friday Commitments of Traders report, said managed money’s net long cattle position was 19,186 contracts, up 29, or 0.15%, from 19,157 in the previous week.

At the same time, commercial traders, those who theoretically could make or take delivery of a futures contract, cut their short live cattle position by 4,496, or 7.39%, to 56,359 contracts from 60,855.

Total live cattle open interest during the CFTC week rose to 251,084 contracts, up 3,257, or 1.31%, from 247,827, according to the CME Group.

The CFTC reported that managed money arrived at its new net long position by adding 3,522 long positions and 3,493 new short positions while accumulating 699 more spread positions.  This left them representing 24.8% of total long open interest and 17.1% of total short open interest.

Commercial traders got to their new net short position by adding 2,083 long positions and covering 2,413 short positions.  This left them in control of 16.6% of total long open interest and 30.1% of total short open interest.

During the latest reporting week, the most-active Aug cattle contract declined to the new contract low of $108.17 per cwt on Tuesday before closing at $108.90.  From close to close, this is a decline of $4.75, or 4.18%, from $113.65 the previous Tuesday.




Managed money dropped out of their net long corn position during the week ended Tuesday to the lowest they have been in nearly three months.  At the same time, commercials continued cutting their net short positions to their lowest level in nearly three months.

The CFTC reported managed money’s new position was net short by 5,886 contracts, compared with being net long by 86,050 contracts the week before.  This is the lowest position for these traders since the week ended April 19, when it was net short by 29,272.

Meanwhile, commercial traders slashed their net short position to 313,371 contracts from 392,440, a drop of 79,069, or 20.15%.

Total corn open interest during the latest reporting week rose 7,830 contracts, or 0.61%, to 1.298 million from 1.290 million, the CME Group said.

The CFTC reported that managed money arrived at its new corn position by liquidating 37,512 long positions and adding 54,424 new short positions while acquiring 4,158 spreads.  This left them representing 12.9% of total long open interest and 13.4% of total short open interest.

Commercials got to where they were by adding 32,587 long positions and covering 46,482 short positions to leave them in control of 25.6% of total long open interest and 49.7% of total short open interest.

During the week, the most-active Dec contract opened a gap on daily charts and then filled it, closing Tuesday at $3.60 ¼ a bushel, up $0.02 ¼, or 0.63%, from $3.58 the previous Tuesday.




Cash cattle trade was reported Friday at $117 per cwt on a live basis with some in Nebraska at $117.50, down $3 from the previous week.  On a dressed basis, prices ranged from $187 to $188, down $4.

The USDA’s choice cutout Friday was $0.29 per cwt lower at $204.71, while select was off $0.68 at $192.38.  The choice/select spread widened to $12.22 from $11.94 with 79 loads of fabricated product sold into the spot market.

The CME Feeder Cattle Index for the seven days ended Thursday was $143.67 per cwt, down $0.19.  This compares with the Aug settlement Friday of $139.57, down $2.12.