Managed money, a proxy for large commodity investment funds, liquidated even more of their collective net long live cattle futures position during the week ended Tuesday, taking their position to its lowest point since Nov. 27.
The information came in the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday where it said managed money’s net long live cattle position Tuesday was 64,319 contracts, down 7,595, or 10.6%, from 71,914 a week earlier and down 90,864, or 58.6%, from the peak of 155,183 on April 23.
CFTC data also showed that commercial traders, those who own the cattle and theoretically could make or take delivery of a futures contract, cut their collective net short position to 169,388 contracts, down 4,540, or 2.61%, from 173,928 the week before. The new position also was their lowest net short position since Dec. 31 when it was 169,155 contracts and down 57,289, or 25.3%, from the peak of 226,677 on April 23.
The CFTC said managed money arrived at its new net long cattle position by liquidating 5,006 long positions, adding 2,589 short positions and putting on 17 new spread positions. This left their position representing 22.9% of total long open interest, 5.9% of total short open interest and 16.8% of total spread open interest.
Commercials got to their new short position by adding 1,343 long positions and covering 3,197 short positions, leaving their position in control of 8.9% of total long open interest and 53.6% of total short open interest.
The CME Group said total live cattle open interest as of Tuesday was 378,704 contracts, down 1,556, or 0.41%, from 380,260 a week earlier.
CME Group data also showed that the most-active Aug live cattle futures contract moved almost sideways during the CFTC reporting week, settling Tuesday at $107.77 per cwt, compared with $108.27 a week earlier. The contract has since plummeted to new contract lows.
FUNDS BUY CORN AGGRESSIVELY
The CFTC data showed that managed money bought corn aggressively during the week ended Tuesday, their second straight week of active buying. The action took their collective net short position to its lowest since Feb. 5.
Managed money’s new corn position was short by 22,294 contracts, down 95,660, or 81.1%, from 117,954 a week earlier and down 321,891, or 93.5%, from the latest top of 344,185 on April 23.
Commercials’ new net short position Tuesday was 280,729 contracts, up 105,670, or 60.4%, from 175,059 a week earlier. It was their largest net short position since Jan. 22 when it was short by 304,565 contracts.
The CFTC said managed money reached its new short corn position by adding 10,576 long positions, covering 85,084 short positions and putting on 13,359 new spread positions. This left them in control of 12.9% of total long open interest, 14.1% of total short open interest and 11.7% of total spread open interest.
Commercials added 3,275 long positions and 108,945 short positions.
CATTLE, BEEF RECAP
Cash cattle trading was reported last week in the Plains at $115 to $117 per cwt on a live basis, steady to up $1 from the previous week. Dressed-basis trading was reported at $186 per cwt, steady to up $1.
The USDA choice cutout Friday was down $0.37 per cwt at $223.21, while select was down $1.18 at $207.69. The choice/select spread widened to $15.52 from $14.71 with 87 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday was $132.47 per cwt, down $2.40 from the previous day. This compares with Friday’s Aug contract settlement of $133.12, down $5.10.