Large commodity index funds, or managed money, liquidated some of their collective net long live cattle futures position in the week ended last Tuesday, May 20, according to the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
Commercial traders, those who deal more with the cash cattle market, clipped their total net short live cattle positions in the same week.
FUNDS SHORTEN CATTLE POSITION
Last Tuesday, managed money had a collective net long live cattle position of 126,037 contracts, down 1,852, or 1.45%, from 127,889 a week earlier, marking the first dip after four weeks of a rising net long position.
At the same time, commercial traders had a total net short live cattle position of 127,704 contracts, down 8,107, or 5.97%, from 135,811 a week earlier.
The CFTC said managed money Tuesday owned 152,950 long positions, or 39.1% of total open interest, for a gain of 657 from a week earlier. They also held 26,913 short positions, or 6.9% of total open interest, for a gain of 2,509. Funds also held 47,181 spread positions, or 12.1% of total open interest, for a gain of 3,092.
Commercials last Tuesday held 52,877 long live cattle positions, 13.5% of total open interest for an increase of 8,842. They also held 180,581 short positions, 46.2% of total open interest, for a gain of 735.
The CFTC said total CME live cattle open interest last Tuesday was 390,812 contracts, down 10,949, or 2.88%, from 379,863 a week earlier.
The most-active Aug contract value fell in the CFTC-reporting week, settling last Tuesday at $207.85 per cwt, versus $211.62 a week earlier.
FUNDS TAKE SHORTER CORN POSITION
Managed money last Tuesday had a collective net short corn position of 95,483 contracts, up 31,211, or 48.6%, from 64,272 a week earlier for their shortest position since Oct. 15 when it was 107,448 contracts.
Commercials, meanwhile, had a total net short position of 225,288 contracts, down 18,913, or 7.74%, from 244,201 a week earlier. This compares with their position on Oct. 22 when it was 209,206 contracts.
CFTC data showed managed money last Tuesday held 190,130 long corn positions, or 11.6% of total open interest, for a decline of 6,333, while holding 285,613 short positions, or 17.4% of total open interest, for an increase of 24,878. They also had 227,876 spread positions, or 13.9% of the total, for an increase of 23,793.
Commercials last Tuesday held 423,061 long corn positions, or 25.8% of total open interest, for a gain of 13,620 contracts. They also had 648,349 short positions, or 39.6% of total open interest for a decline of 5,293.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $220.00 per cwt to $224.38, compared with last week’s range of $219.93 to $230.32 per cwt. FOB dressed steers, and heifers went for $348.05 per cwt to $351.00, compared with $344.06 to $364.74.
The USDA choice cutout Tuesday was up $0.30 per cwt at $361.85 while select was down $0.49 at $350.83. The choice/select spread widened to $11.02 from $10.23 with 76 loads of fabricated product and 36 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $381.70 per cwt, and 50% beef was $119.75.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.15 to $1.25 a bushel over the Jul corn contract, which settled at $4.59 1/2, unchanged.
The CME Feeder Cattle Index for the seven days ended Monday was $296.09 per cwt, down $0.16. This compares with Tuesday’s Aug contract settlement of $298.15, down $2.22.