Managed money, or large commodity investment funds, as if Tuesday were nearing zero with their net long live cattle position after nine straight weeks of liquidation, according to the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
The report said managed money’s net long live cattle futures position was 15,387 contracts, down 7,269, or 32.1%, from 22,656 the previous week and down 87,891, or 85.1%, from the latest high of 103,278 on Feb. 20. It is their lowest position in more than a year.
At the same time, commercial traders, those who raise the cattle and are mostly hedgers, cut their cumulative net short position, also for the ninth straight week. The new position is net short by 112,248 contracts, down 6,707, or 5.64%, from 118,955 the previous week and down 85,157, or 43.1%, from the latest high point of 197,405 the week of Feb. 20.
The CFTC said managed money arrived at its new net long cattle position by liquidating 3,897 long positions, adding 3,372 short positions while placing 2,188 more spread positions. This left them with 22.6% of total long open interes5, 18.1% of total short open interest and 12.0% of total spread open interest.
Commercials got to where they were by adding 2,210 long positions and covering 4,497 short positions to leave them in control of 12.7% of total long open interest and 45.1% of total short open interest.
The CME Group said that as of Tuesday, total live cattle open interest was 346,785 contracts, up 1,889, or 0.55%, from 344,896 the previous week.
During the week ended Tuesday, the CME Group’s most-active Jun live cattle contract moved slightly higher to close at $104.05 per cwt from $104.90 the previous Tuesday.
FUNDS TRIM CORN POSITION
During the CFTC reporting week, managed money trimmed its collective net long corn position by 12,271 contracts, or 9.71%, to 114,118 contracts from 126,389 the previous week.
At the same time, commercial traders cut their net short position to 516,607 from 521,302, a loss of 4,695, or 0.90%.
The CFTC said managed money arrived at its new corn position by adding 6,583 long positions and 18,854 short positions while unwinding 13,296 spread positions. This left them representing 16.7% of total long open interest, 10.3% of total short open interest and 9.0% of total spread open interest.
Commercials got to where they were by liquidating 40,655 long positions and covering 45,350 short positions, leaving them in control of 21.9% of total long open interest and 50.7% of total short open interest.
Total open interest fell to 1.798 million from 1.857 million.
CATTLE, BEEF RECAP
There were no sales on the Livestock Exchange Video Auction Wednesday. The previous Wednesday, 161 head sold for 1- through 9-day delivery at $122 per cwt, and 338 sold for 1- through 17-day delivery at $120.
Early week cash cattle trade was reported at $120 to $121 per cwt on a live basis, down $1 from last week and lightly at $195 dressed, steady with the upper end of last week’s range. However, Friday trade was at $124 to $126 live, up $3 to $4, and at $198 dressed, up $3 to $7.
The USDA choice cutout Friday was up $1.59 per cwt at $221.74, while select was off $0.16 at $204.32. The choice/select spread widened to $17.42 from $15.67 with 57 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $139.99 per cwt, up $0.50. This compares with Friday’s May’s close of $142.02, up $1.72.