Large commodity index funds, called managed money, sold live cattle futures in the week ended last Tuesday, May 9, while hedgers covered short positions.
That was according to data published by the Commodity Futures Trading Commission in its weekly Commitments of Traders report Friday.
FUNDS LESS LONG CATTLE FUTURES
As of last Tuesday, managed money had a cumulative net long live cattle position that totaled 94,010 contracts, down 12,134, or 11.4%, from the previous week’s recent high of 106,144 contracts.
At the same time, hedgers, referred to as commercial traders since they own, or could own, the cattle traded in the futures market, had a total net short position of 139,082 contracts, down from 143,009 a week earlier.
The CFTC said managed money arrived at their new cattle position by liquidating 14,550 long positions, covering 2,416 short positions and unwinding 7,645 spread positions. This left them holding 34.4% of total long open interest, 4.8% of total short open interest and 14.0% of total spread open interest.
Commercial traders got to where they were by adding 113 long positions and covering 3,814 short positions, leaving them in charge of 9.6% of total long open interest and 53.3% of total short open interest.
The CME Group said total live cattle open interest as of last Tuesday was 320,937 contracts, down 30,022, or 8.55%, from 350,959 a week earlier.
CME data also showed that the most-active Aug contract rose in value during the CFTC-reporting week to settle last Tuesday at $161.55 per cwt, compared with $160.95 a week earlier.
FUNDS LESS SHORT CORN
As of last Tuesday, managed money had a collective net short Chicago corn position of 104,505 contracts, down 7,279, or 6.51%, from 111,784 a week earlier.
Commercial traders last Tuesday had a total net short corn position of 140,742 contracts, up 11,989, or 9.31%, from 128,753 a week earlier.
The CFTC said managed money arrived at their new corn position last Tuesday by adding 7,538 long positions, 259, short positions and unwinding 827 spread positions. This left them with 12.8% of total long open interest, 21.0% of total short open interest and 8.7% of total spread open interest.
Commercials got to where they were last Tuesday by adding 8,265 long positions and 20,254 short positions, leaving them holding 29.9% of total long open interest and 41.0% of total short open interest.
The CME Group said total corn open interest last Tuesday was 1.259 million contracts, up from 1.220 million a week earlier, a change of 39,000, or 3.20%.
The most-active Jul corn contract rose in value during the week to settle at $5.84 ¾, compared with $5.80 a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $171.05 per cwt to $171.47, compared with last week’s range of $171.00 to $179.10 per cwt. FOB dressed steers, and heifers went for $273.33 per cwt to $274.36, compared with $271.48 to $278.17.
The USDA choice cutout Monday was down $2.63 per cwt at $301.98 while select was up $0.03 at $284.71. The choice/select spread narrowed to $17.27 from $19.93 with 76 loads of fabricated product and 15 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 to up $0.03 at $1.73 to $1.88 a bushel over the Jul corn contract, which settled at $5.92 1/2 a bushel, up $0.06 1/4.
The CME Feeder Cattle Index for the seven days ended Friday was $202.11 per cwt, up $1.53. This compares with Monday’s May contract settlement of $206.50 per cwt, up $1.02.