Funds Keep Trimming Cattle Position

Managed money, or large commodity investment funds, trimmed their net long live cattle futures position for the 11th straight week during the week ended Tuesday as commercial traders also cut their net short position.

The Commodity Futures Trading Commission said Friday in its weekly Commitments of Traders Report that managed money’s net long live cattle position was 77,762 contracts, down only 730, or 0.93%, from 78,492 the previous Tuesday.

The CFTC said commercial traders, those who own the cattle at some point, cut their collective net short position by 8,170, or 4.79%, to 162,444 contracts from 170,614 the previous week.  It was the 11th straight week of cuts for these traders, too.

Swap dealers, those who assist with over-the-counter or cash trades, held their net long position relatively steady at 95,841 contracts, compared with 96,156 the previous week.

The CFTC said managed money arrived at its new position by adding 444 long positions and 1,174 short positions while unwinding 677 spread positions.  This left them representing 30.2% of total long open interest, 5.6% of total short open interest and 6.7% of total spread open interest.

Commercials got to their new position by adding 483 long positions and covering 7,687 short positions, leaving them in charge of 8.1% of total long open interest and 59.4% of total short open interest.

Swap dealers liquidated 92 long positions and added 223 shorts while putting on 552 spread positions, leaving them with 31.4% of total long open interest, 1.1% of total short open interest and 1.2% of total spread open interest.

The CME Group said total live cattle open interest during the week rose 2,719 contracts, or 0.87%, to 316,536 contracts from 313,817.

The most-active Oct contract declined $1.62 per cwt, or 1.50%, during the week to $106.10 from $107.72 the previous Tuesday.  In between, it set a swing high of $109.75 on Monday.

 

FUNDS ADD TO NET SHORT CORN POSITION

 

After taking on a net short CBOT corn position two weeks ago, managed money added to its net short position in the week ended Tuesday.  The CFTC said its new position was net short by 63,532 contracts, 37,509, or 144.1%, more than 26,023 the previous week.

Meanwhile, commercial traders cut their net short position to 229,425 contracts from 276,019 the previous Tuesday, a decline of 46,594, or 16.9%.

Managed money arrived at its new position by liquidating 7,936 long positions and adding 29,573 shorts while putting on 4,621 spread positions.  This left them holding 16.1% of total long open interest, 20.7% of total short open interest and 7.09% of total spread open interest.

Commercials liquidated 31,128 long positions and covered 77,722 shorts, leaving them with 26.0% of total long open interest and 42.7% of total short open interest.

 

CATTLE, BEEF RECAP

 

Cattle traded Wednesday on the livestock exchange video auction at $105.10 per cwt on a live basis for 1- to 9-day delivery and at $105 live and $166 dressed for 1- to 17-day delivery.

Cash trading was reported last week at $104 to mostly $105 per cwt on a live basis, down $2 from the previous week.  Cattle traded in Nebraska’s dressed market at mostly $165 up to $166, down $7.

The USDA’s choice cutout Friday was down $0.56 per cwt at $191.35, while select was off $0.69 at $190.65.  The choice/select spread widened to $0.70 from $0.57 with 93 loads of fabricated product sold into the spot market.

The CME Feeder Cattle index for the seven days ended Thursday was $143.08 per cwt, up $0.17.  This compares with Friday’s Sep settlement of $142.72, up $0.15.