Funds Reduce Net Long Cattle Position

For the third straight week, large commodity index funds, known as managed money, reduced their collective net long live cattle futures position during the week ended Tuesday.

At the same time, cash cattle dealers, known as commercial traders, trimmed their total net short live cattle position.

The data came from Friday’s weekly Commitments of Traders report from the Commodity Futures Trading Commission.

 

FUNDS CUT LONG CATTLE POSITION

 

Managed money, Tuesday, had a collective net long live cattle position of 83,417 contracts, down 2,753, or 3.19%, from 86,170 a week earlier.

Commercial traders, had a total net short position Tuesday of 123,630 contracts, down from 127,620 a week earlier.

The CFTC said managed money arrived at their new net long position by liquidating 2,976 long positions, covering 223 short positions and putting on 4,708 new spread positions.  This left them in charge of 32.3% of total long open interest, 3.8% of total short open interest and 13.9% of total spread open interest.

Commercial traders got to where they were Tuesday by adding 618 long positions and covering 3,372 short positions, leaving them holding 12.9% of total long open interest and 55.1% of total short open interest.

The CME Group reported live cattle open interest Tuesday at 293,269 contracts, up 1,524, or 0.52%, from 291,745 a week earlier.

The most-active Dec contract rose in value during the CFTD-reporting week to settle Tuesday at $186.87 per cwt, up from $185.00 a week earlier.

 

FUNDS CUT NET SHORT CORN POSITION

 

As of Tuesday, managed money had a collective net short Chicago corn futures position of 105,572 contracts, down 4,877, or 4.42%, from 110,449 a week earlier.

Meanwhile, commercial traders had a total net short corn position of 85,061 contracts, down 875, or 1.02%, from 85,936 a week earlier.

The CFTC said managed money arrived at their new corn position by adding 2,470 long positions, covering 2,407 short positions and putting on 9,652 new spread positions.  This left them with 13.3% of total long open interest, 21.0% of total short open interest and 14.2% of total spread open interest.

Commercials got to where they were Tuesday by liquidating 3,513 long positions and covering 4,388 short positions, leaving them in charge of 32.3% of total long open interest and 38.5% of total short open interest.

The CME Group said total corn open interest Tuesday was 1.357 million contracts, up 6,096, or 0.45%, from 1.351 million a week earlier.

The most-active Dec contract rose in value during the CFTC-reporting week, settling Tuesday at $4.89 a bushel, up $0.03 ½, or 0.72%, from $4.85 ½ a week earlier.

 

CATTLE, BEEF RECAP

 

The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $182.09 per cwt to $187.00, compared with the previous week’s range of $182.00 to $185.26 per cwt.  FOB dressed steers, and heifers went for $285.90 per cwt to $294.21, compared with $285.29 to $291.98.

The USDA choice cutout Friday was up $1.26 per cwt at $305.38 while select was up $1.22 at $278.70.  The choice/select spread widened to $26.68 from $26.64 with 106 loads of fabricated product and 34 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 $1.30 to $1.45 a bushel over the Dec corn contract, which settled at $4.95 1/2 a bushel, down $0.09 1/2.

No live cattle contracts were posted for delivery Friday.

The CME Feeder Cattle Index for the seven days ended Thursday was $243.99 per cwt, down $0.84.  This compares with Friday’s Oct contract settlement of $241.82, down $1.75.