Large commodity index funds, known as managed money, lifted their collective net long live cattle futures position while hedgers barely increased their total net short position during the six days ended Monday.
The data came from the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday. The report usually documents activity as of the previous Tuesday, but since Tuesday fell on a national holiday, the report was drawn up from positions on Monday.
FUNDS BUY MORE CATTLE
As of last Monday, managed money had a collective net long live cattle position of 112,152 contracts, up 5,000, or 4,67%, from the previous Tuesday’s position of 107,152 contracts.
Also as of last Monday, cattle owners, known as commercial traders, who approach the market primarily from a hedging standpoint, had a total net short position of 141,766 contracts. This was up 40 contracts, or 0.03%, from 141,726 the previous Tuesday.
The CFTC said managed money arrived at their new cattle position by adding 3,757 long positions, covering 1,248 short positions and putting on 255 spread positions. This left them with 35.5% of total long open interest, 3.1% of total short open interest and 15.0% of total spread open interest.
Commercial traders got to where they were by adding 3,970 long positions and 4,010 short positions, leaving them holding 11.6% of total long open interest and 52.6% of total short open interest.
The CME Group said live cattle open interest last Monday was 345,683 contracts, up 10,004, or 2.98%, from 335,679 the previous Tuesday.
CME data also showed the most-active Aug contract rose in during the six days to settle at $176.82 per cwt, compared with $172.50 the previous Tuesday.
FUNDS GET SHORT CORN
At the same time, managed money had a collective net short Chicago corn position of 7,359 contracts, down from a net long position of 66,761 the previous Tuesday.
Commercial traders last Monday had a total net short position of 210,525 contracts, down 69,598, or 24.8%, from 280,123 the previous Tuesday.
The CFTC said managed money arrived at their new corn position by liquidating 26,547 long positions, adding 47,579 short positions and putting on 12,528 spread positions. This left them with 13.0% of total long open interest, 13.6% of total short open interest and 12.9% of total spread open interest.
Commercial traders got to where they were last Monday by adding 14,994 long positions and covering 54,604 short positions, leaving them in control of 29.6% of total long open interest and 46.5% of total short open interest.
The CME Group said corn open interest last Monday was 1.247 million contracts, down from 1.282 million the previous Tuesday.
The most-active Dec contract settled Monday at $4.903 ½ a bushel vs $5.61 the previous Tuesday.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $177.10 per cwt to $190.00, compared with the previous week’s range of $179.83 to $186.11 per cwt. FOB dressed steers, and heifers went for $280.53 per cwt to $289.54, compared with $284.16 to $289.29.
The USDA choice cutout Friday was down $2.97 per cwt at $316.90 while select was off $4.34 at $285.63. The choice/select spread widened to $31.27 from $29.90 with 98 loads of fabricated product and 36 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.30 to $1.50 a bushel over the Jul corn contract, which settled at $5.60 1/2 a bushel, down $0.06 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $231.21 per cwt, up $0.95. This compares with Friday’s Aug contract settlement of $245.42 per cwt, up $3.15.