Managed money, a moniker for large commodity index funds, reduced their net long live cattle position as of last Tuesday, March 26, while hedgers cut their net short positions.
That information came from Friday’s weekly Commitments of Traders report from the Commodity Futures Trading Commission.
FUNDS REDUCE LONG CATTLE POSITION
As of Tuesday, managed money had a collective net long live cattle position of 65,711 contracts, down 1,019, or 1.53%, from 66,730 a week earlier. It was the second straight week of a declining net long position from the recent high of 67,347 contracts on March 12.
At the same time, hedgers, or commercial traders, had a total net short position of 107,239 contracts, down 6,433, or 5.66%, from 113,672 a week earlier. It also was their second straight week of position reduction from the March 12 high of 116,056 contracts.
The CFTC said managed money arrived at their new live cattle position by liquidating 3,434 long positions, covering 2,415 short positions and unwinding 4,504 spread positions. This left them with 27.4% of total long open interest, 6.0% of total short open interest and 14.7% of total spread open interest.
Commercial traders got to where they were last Tuesday by liquidating 2,722 long positions and covering 9,155 short positions, leaving them with 14.8% of total long open interest and 49.8% of total short open interest.
The CFTC also reported that total live cattle open interest last Tuesday was 306,854 contracts, down 12,749, or 3.99%, from 319,603 a week earlier.
The CME Group reported that its most-active Jun contract declined in value in the CFTC-reporting week to settle last Tuesday at $178.37 per cwt, down $6.63, or 3.58%, from $185.00 a week earlier.
FUNDS SELL CORN AGAIN
Last Tuesday, managed money had a collective net short Chicago corn position of 245,463 contracts, up 1,277, or 0.52%, from 244,186 a week earlier, reversing a four-week trend of reducing their net short position.
Commercials had a total net short position of 34,562 contracts, down 15,544, or 31.0%, from 50,106 a week earlier, reversing a four-week sell-off.
The CFTC said managed money arrived at their new position by adding 1,738 long positions, 3,015 short positions and 11,897 spread positions. This left them with 11.0% of total long open interest, 26.5% of total short open interest and 17.8% of total spread open interest.
Commercials got to where they were by adding 8,625 long positions and covering 6,919 short positions, leaving them with 25.2% of total long open interest and 27.3% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $188.78 per cwt to $189.71, compared with last week’s range of $188.79 to $194.99 per cwt. FOB dressed steers, and heifers went for $298.28 per cwt to $299.46, compared with $294.13 to $302.18.
The USDA choice cutout Monday was down $0.98 per cwt at $305.74 while select was off $1.64 at $301.79. The choice/select spread widened to $3.95 from $3.29 with 59 loads of fabricated product and 18 loads of trimmings and grinds sold into the spot market.
The daily weighted average USDA listed wholesale price for fresh 90% lean beef was $347.00 per cwt, and 50% beef was $96.81.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.40 to $1.55 a bushel over the May corn contract, which settled at $4.35 1/2 a bushel, down $0.06 1/2.
The CME Feeder Cattle Index for the seven days ended Friday was $247.67 per cwt, up $0.50. This compares with Monday’s Apr contract settlement of $240.42, down $6.70.