Large commodity index funds, called managed money, raised their collective net long live cattle futures position for the fourth straight time in the week ended last Tuesday, July 9, as hedgers edged their total net short position higher.
The data came from Friday’s weekly Commitments of Traders report from the Commodity Futures Trading Commission.
FUNDS PUSH LIVE CATTLE POSITION
Last Tuesday, managed money had a collective net long live cattle position of 68,963 contracts, up 252, or 0.37%, from 68,711 a week earlier. It was their largest net long position since Oct. 10 when it was 83,417 contracts.
At the same time, hedgers, better known as commercial traders since they invest mostly in the cash market, had a total net short live cattle position of 94,601 contracts, up 248, or 0.26%, from 94,353 a week earlier. It was their largest position since May 28 when it was 97,851 contracts.
CFTC data showed that managed money arrived at their new cattle position by liquidating 1,134 long positions, covering 1,386 short positions and putting on 1,526 spread positions. This left them holding 27.4% of total long open interest, 6.1% of total short open interest and 15.3% of total spread open interest.
Commercials got to where they were by adding 2,517 long positions and 2,765 short positions, leaving them with 12.7% of total long open interest and 41.9% of total short open interest.
CFTC data also showed that total live cattle open interest at the CME last Tuesday amounted to 323,286 contracts, up 3,310, or 1.03%, from 319,976 a week earlier.
CME Group data showed the most-active Oct contract rose to a new contract high of $188.55 per cwt and then declined during the CFTC-reporting week to end at $183.30, compared with $185.65 a week earlier.
FUNDS GET SHORTER CORN
Last Tuesday, managed money had a collective net short Chicago corn position of 356,415 contracts, up 9,641, or 2.78%, from 346,774 a week earlier.
Commercials last Tuesday had a total net long corn position of 22,682 contracts, up 17,024, or 300.9%, from 5,658 a week earlier.
CFTC data showed managed money arrived at their new corn position by adding 2,007 long positions, 11,648 short positions and 16,678 spread positions. This left them with 9.8% of total long open interest, 32.6% of total short open interest and 14.5% of total spread open interest.
Commercials got to where they were by adding 22,072 long positions and 5,048 short positions, leaving them holding 27.6% of total long open interest and 26.2% of total short open interest.
Total corn open interest last Tuesday was 1.562 million contracts, versus 1.520 million a week earlier.
The Dec contract declined during the week.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $190.35 per cwt to $190.43, compared with last week’s range of $188.36 to $200.93 per cwt. FOB dressed steers, and heifers went for $302.65 per cwt to $303.80, compared with $300.74 to $312.62.
The USDA choice cutout Monday was up $0.57 per cwt at $321.49 while select was up $2.51 at $304.82. The choice/select spread narrowed to $16.67 from $19.75 with 59 loads of fabricated product and 30 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $377.68 per cwt, and 50% beef was $117.51.
The USDA said basis bids for corn from feeders in the Southern Plains were up $0.02 to $0.05 at $1.67 to $1.80 a bushel over the Sep corn contract, which settled at $3.90 1/2 a bushel, down $0.11 1/2.
The CME Feeder Cattle Index for the seven days ended Friday was $261.88 per cwt, up $0.84. This compares with Monday’s Aug contract settlement of $258.77, up $0.12.