Large commodity investment funds, called managed money, continued to trim its net long live cattle futures position during the week ended Tuesday as commercial traders stayed with their pattern of lightening their net short position.
The Commodity Futures Trading Commission said in its weekly Commitments of Traders report Friday that managed money’s new net long live cattle position was 107,815 contracts, down 2,920, or 2.64%, from 110,735 the previous week. It was the sixth straight week of declines.
Commercial traders, those who theoretically could make or take delivery of a futures contract, cut their net short live cattle position by 3,611 contracts, or 1.85%, to 191,302 from 194,913 the previous week. Just like managed money, it was the sixth straight week of declines.
Swap dealers, those who facilitate over-the-counter or cash trading, had a net long live cattle position of 101,700 contracts as of Tuesday, down from 104,552 the previous week.
The CFTC said managed money arrived at its new cattle position by liquidating 3,931 long positions, covering 1,011 short positions and unwinding 2,890 spreads. This left them representing 31.3% of total long open interest, 2.4% of total short open interest and 8.4% of spread open interest.
Commercial traders got to their new position by adding 2,024 long positions and covering 1,587 short positions, leaving them in control of 7.6% of total long open interest and 59.0% of total short open interest.
Swap dealers liquidated 1,787 long positions, added 1,065 short positions and put on 2,787 spread positions to leave them holding 28.3% of total long open interest, 1.1% of total short open interest and 2.0% of total spread open interest.
The CME group said total live cattle open interest during the week amounted to 373,215 contracts, down 3,095, or 0.82%, from 376,310 the previous week.
The most-active Oct live cattle contract fell during the week to close at $112.77 per cwt from $116.87. Along the way, it set a swing high of $119.30 on Wednesday and gapped lower to $115.17 on Monday.
FUNDS TRIM LONG CORN POSITION
Meanwhile, managed money trimmed its net long corn futures position to 106,678 contracts from 107,803 the previous week, a decline of 1,125, or 1.04%.
Commercial traders cut their net short corn position to 360,919 contracts from 364,418 the previous week, down 3,499, or 0.96%.
The CFTC said managed money arrived at its new corn position by liquidating 5,017 long positions and covering 3,892 short positions, all while unravelling 851 spread positions. This left them representing 17.6% of total long open interest, 10.0% of total short open interest and 5.5% of total spread open interest.
Commercials liquidated 16,999 long positions and covered 20,498 shorts to leave them representing 24.7% of total long open interest and 50.5% of total short open interest.
CATTLE, BEEF RECAP
Fed cattle sales on the livestock exchange video auction Wednesday averaged $117.68 per cwt, down $0.59 from $118.27 last week. Lots with one- to nine-day delivery sold at $117.72, compared with $118.30 last week, and lots with one- to 17-day delivery sold at $117.63, compared with $118.00 last week.
Light cash cattle trading was reported at $117 per cwt on a live basis, down from $118.25 to $120.50, mostly $120 the previous week. Dressed-basis trade was at $187 to $188, down $2.
The USDA’s choice cutout Friday was down $0.21 per cwt at $206.22, while select was up $0.16 at $196.82. The choice/select spread narrowed to $9.40 from $9.77 with 72 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday was $149.36 per cwt, down $1.94. This compares with Friday’s Aug settlement at $146.05, down $1.77.