After moving higher for nine straight weeks, managed money’s net long live cattle futures position dipped in the week ended Tuesday, even as commercial traders’ net short position continued to grow.
The data was released by the Commodity Futures Trading Commission on Friday in the weekly Commitments of Traders report.
The data showed that managed money’s, a term for large commodity investment funds, net long live cattle position Tuesday was 54,941 contracts, down 211, or 0.38%, from 55,152 the previous week.
At the same time, commercial traders’ net short position rose to 136,567 contracts from 134,811 the previous week, a gain of 1,756, or 1.30%. Commercial traders are those who own the cattle at some point in their lives and primarily are hedgers. This was their largest net short position since April 3 when it was 139,372 contracts.
The CFTC reported that managed money arrived at its new net long cattle position by liquidating 406 long positions, covering 195 short positions and unwinding 1,783 spread positions. This left them representing 26.8% of total long open interest, 8.4% of total short open interest and 10.3% of total spread open interest.
Commercials got to where they were by adding 396 long positions and 2,152 short positions, leaving them holding 11.5% of total long open interest and 57.2% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 300,946 contracts, down 690, or 0.23%, from 301,636 the week before.
CME Group data also showed that the most-active Oct contract declined in price to close at $108.72 per cwt on Tuesday from $110.92 the previous Tuesday, a drop of $2.20, or 1.98%.
FUNDS GET LESS SHORT CORN
During the same CFTC reporting week, managed money continued to get less short CME Group corn futures, extending this move for the fourth straight week to their lowest net short position since June 19 when they were net short by 57,451 contracts.
Tuesday, managed money’s net short corn futures position was 60,139 contracts, down 7,886, or 11.6%, from 68,025 the previous week.
In contrast, commercials’ collective net short position stood at 266,762 contracts on Tuesday, up 4,193, or 1.60%, from 262,569 the previous week and down from 267,805 two weeks previous.
The CFTC said managed money arrived at its new net short corn position by liquidating 7,647 long positions, covering 15,533 short positions and adding 3,478 spread positions. This left them representing 14.5% of total long open interest, 18.0% of total short open interest and 10.7% of total spread open interest.
Commercials got to their new position by adding 5,358 long positions and 9,551 short positions, leaving them holding 29.2% of total long open interest and 44.7% of total short open interest.
The Dec corn contract settled Tuesday at $3.76 ½ a bushel, vs $3.84 ½ a week earlier.
CATTLE, BEEF RECAP
Cash cattle traded last week at $109 to $110.50 per cwt on a live basis, down $0.50 to $1.00, and at $173 to $174 dressed, down $2 to $5.
No fed cattle sales were reported Wednesday on the Livestock Exchange Video Auction. Two weeks earlier, 851 head sold at an average price of $110.07 per cwt, versus the last sale at $112 two weeks previous.
The USDA choice cutout Friday was up $2.28 per cwt at $211.38, while select was off $0.54 at $200.92. The choice/select spread widened to $10.46 from $7.64 with 60 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $149.59 per cwt, down $0.70. This compares with Friday’s Aug settlement of $150.95, up $0.67.