As of the week ended Tuesday, large commodity index funds, known as managed money, had a smaller net long live cattle futures position than they held a week earlier, while hedgers had a smaller net short position.
MANAGED MONEY SELLS CATTLE
Data from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday showed managed money with a total net long live cattle position of 59,486 contracts, down 3,191, or 5.09%, from 62,677 a week earlier. It was their smallest net long position since Nov. 29 when it was 58,745 contracts.
At the same time, hedgers, commonly referred to as commercial traders as they own, or will own, the cattle being traded on the futures market, had a total net short position of 106,841 contracts, down 3,800, or 3.43%, from 110,641 a week earlier. It was their smallest net short position since Jan. 24 when it was 106,006 contracts.
The CFTC said managed money arrived at their new net long position by liquidating 5,556 long positions, covering 2,365 short positions and unwinding 5,281 spread positions. This left them in charge of 26.8% of total long open interest, 7.4% of total short open interest and 17.6% of total spread open interest.
Commercial traders got to where they were Tuesday by adding 26 long positions and covering 3,774 short positions, leaving them holding 12.1% of total long open interest and 47.0% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 305,729 contracts, down 10,375, or 3.28%, from 316,104 a week earlier.
CME data also showed that the most-active Jun contract rose in value during the CFTC-reporting week, settling Tuesday at $158.90 per cwt, compared with $156.150 a week earlier. The contract continued to rise through Friday.
FUNDS CUT SHORT CORN POSITION
As of Tuesday, managed money had a net short Chicago corn position of 13,437 contracts, down 32,459, or 70.7%, from 45,896 a week earlier.
Commercials, Tuesday, had a total net short corn position of 232,539 contracts, up 19,729, or 9.27%, from 212,810 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 3,786 long positions, covering 28,673 short positions and putting on 6,693 spread positions. This left them holding 13.8% of total long open interest, 14.8% of total short open interest and 11.4% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 12,405 positions and adding 7,324 short positions, leaving them with 30.1% of total long open interest and 47.4% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.346 million contracts, versus 1.349 million a week earlier.
May corn was $6.47 ¼ a bushel, versus $6.30.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $163.20 to $166.06 per cwt, compared with the previous week’s range of $164.03 to $165.84. FOB dressed steers, and heifers went for $255.92 to $260.73 per cwt, versus $257.00 to $262.24.
The USDA choice cutout Friday was up $2.87 per cwt at $282.07 while select was up $2.26 at $270.72. The choice/select spread widened to $11.35 from $10.74 with 81 loads of fabricated product and nine 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 $1.60 to $1.70 a bushel over the May corn contract. Bids in Kansas were steady at $0.75 over May, which settled at $6.60 1/2 a bushel, up $0.11.
The CME Feeder Cattle Index for the seven days ended Wednesday was $193.34 per cwt, up $0.99. This compares with Friday’s Apr contract settlement of $200.82 per cwt, up $0.92.