Large commodity index funds, known as managed money, Tuesday had a lower collective net long live cattle futures position than they had a week earlier as hedgers trimmed their total net short position for the third straight week.
The data came from the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
FUNDS SELL CATTLE
As of Tuesday, managed money had a collective net long live cattle position of 49,704 contracts, down 10,475, or 17.4%, from 60,179 a week earlier.
Also as of Tuesday, hedgers, known as commercial traders since they own, or will own, the cattle, had a total net short position of 101,623 contracts, down 8,028, or 7.32%, from 109,651 a week earlier.
The CFTC said managed money arrived at their new cattle position by liquidating 9,505 long positions, adding 970 short positions and unwinding 2,042 spread positions. This left them with 27.2% of total long open interest, 9.7% of total short open interest and 15.1% of total spread open interest.
The CFTC also said commercial traders got to where they were Tuesday by adding 2,931 long positions and covering 5,097 short positions, leaving them in charge of 12.5% of total long open interest and 48.2% of total short open interest.
The CME Group said total live cattle open interest was 284,305 contracts, down 7,212, or 23.47%, from 291,517 a week earlier.
CME data also showed that the most-active Feb contract declined in value to settle Tuesday at $153.05 per cwt, down from $154.77 a week earlier.
FUNDS SELL CORN
As of Tuesday, managed money had a collective net long Chicago corn position of 165,847 contracts, down 55,961, or 25.2%, from 221,808 a week earlier.
Meanwhile, commercials had a net short corn position of 451,099 contracts, down 37,200, or 7.62%, from 488,299 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 51,473 long positions, adding 4,488 short positions and unwinding 10,105 short positions. This left them in charge of 16.1% of total long open interest, 4.5% of total short open interest and 10.1% of total spread open interest.
The CFTC also said commercials got to where they were Tuesday by adding 1,014 long positions and covering 36,186 short positions, leaving them with 27.1% of long open interest and 58.8% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.422 million contracts, down 62,872, or 4.24%, from 1.484 million a week earlier.
CME data also showed that the most-active Dec contract declined in value during the CFTC reporting week to settle Tuesday at $6.69 1/4 a bushel, down from $6.73 ¾ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $151.50 to $155.03 per cwt, compared with the previous week’s range of $150.11 to $153.77. FOB dressed steers, and heifers went for $235.92 to $240.89 per cwt, versus $234.01 to $242.86.
The USDA choice cutout Friday was down $2.23 per cwt at $254.87 while select was up $1.09 at $232.83. The choice/select spread narrowed to $22.04 from $25.36 with 65 loads of fabricated product and 56 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 $2.05 to $2.25 a bushel over the Dec futures and for southwest Kansas were steady at $1.00 over Dec, which settled at $6.67 3/4, up 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $175.36 per cwt down $0.03. This compares with Friday’s Jan contract settlement of $180.77, up $0.80.