Managed money, a proxy for large commodity index funds, increased their collective net long live cattle futures position in the week ended Tuesday as cattle owners boosted their total net short position.
The data came from the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
FUNDS BOOST LONG CATTLE POSITION
Tuesday, managed money had a collective net long live cattle futures position of 131,728 contracts, up 6,990, or 5.60%, from 124,738 a week earlier. It was their largest net long position since April 1 when it was 139,126 contracts.
Also on Tuesday, cattle owners, called commercial traders, had a total net short position of 139,589 contracts, up 11,225, or 8.74%, from 128,364 a week earlier. It was their largest net short position since April 1 when it was 149,662 contracts.
Broken down, managed money Tuesday held 159,623 long positions, or 41.2% of total open interest, for a gain of 4,503 contracts. They also held 27,895 short positions, or 7.2% of total open interest, for a decline of 2,487. They also had 39,891 spread positions, or 10.3% of total open interest, for a decline of 7,390.
Commercials Tuesday held 51,136 long positions, or 13.2% of total open interest, for a loss of 12,187 contracts, while also holding 190,725 short positions, or 49.2% of total open interest, for a decline of 962.
CFTC data showed total live cattle open interest at the CME was 387,884 contracts, down 22,552, or 5.49%, from 410,436 a week earlier.
The most-active Aug contract rose in value during the CFTC-reporting week, settling Tuesday at $218.20 per cwt, versus $209.75 a week earlier.
FUNDS RAISE NET SHORT CORN POSITION
Tuesday, managed money had a collective net short corn futures position of 150,143 contracts, up 16,164, or 12.1%, from 133,979 a week earlier.
Meanwhile, commercials had a total net short corn position of 129,417 contracts, down 31,144, or 19.4%, from 160,561 a week earlier.
Broken down, managed money, Tuesday, held 183,575 long positions, or 11.4% of total open interest, for a decline of 40 contracts, while holding 133,718 short positions, or 20.7% of total open interest, for an increase of 16,124 contracts. They also held 212,714 spread positions, or 13.2% of total open interest, for a drop of 11,992 contracts.
Commercials held 445,799 long positions, or 27.6% of total open interest, for a fall of 8,348, while holding 575,492 short positions, or 35.6% of total open interest, for a decline or 39,492.
Total corn open interest was 1.614 million contracts, compared with 1.669 million a week earlier.
Most-active Jul rose in value to $4.38 ¾ a bushel from $4.38 ½.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $225.15 per cwt to $243.37, compared with the previous week’s range of $223.72 to $234.90 per cwt. FOB dressed steers, and heifers went for $353.24 per cwt to $376.32, compared with $349.46 to $370.67.
The USDA choice cutout Friday was up $1.16 per cwt at $377.88 while select was up $0.43 at $363.50. The choice/select spread widened to $14.38 from $13.65 with 62 loads of fabricated product and 19 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $394.27 per cwt, and 50% beef was $146.96.
The USDA said basis bids for corn from feeders in the Southern Plains were up $0.05 to $0.07 at $1.30 to $1.32 a bushel over the Jul corn contract, which settled at $4.44 1/2, up $0.06.
No live cattle delivery notices were posted.
The CME Feeder Cattle Index for the seven days ended Thursday was $317.10 per cwt, up $1.25. This compares with Friday’s Aug contract settlement of $306.42, down $4.82.