Large commodity index funds, known as managed money, reduced their collective net long live cattle position during the week ended last Tuesday, July 18. Cattle owners, called commercial traders, trimmed their total net short position.
The data came from the weekly Commitments of Traders report by the Commodity Futures Trading Commission Friday.
FUNDS LIQUIDATE CATTLE POSITIONS
As of last Tuesday, managed money had a collective net long live cattle position totaling 113,815 contracts, down 3,330, or 2.84%, from 117,145 a week earlier.
At the same time, commercial traders trimmed their total net short live cattle position to 138,587 contracts, down 4,487, or 3.14%, from 143,074 a week earlier.
The CFTC said managed money arrived at their latest recorded position by liquidating 3,662 long positions, covering 332 short positions and putting on 1,066 new spread positions. This left them with 35.1% of total long open interest, 2.8% of total short open interest and 14.3% of total spread open interest.
Commercial traders got to where they were last Tuesday by adding 4,044 long positions and covering 443 short positions, leaving them in control of 12.9% of total long open interest and 52.2% of total short open interest.
The CME Group said live cattle open interest last Tuesday totaled 348,025 contracts, up 934, or 0.27%, from 347,091 a week earlier.
CME data also showed that the most-active Oct contract rose in value during the CFTC-reporting week to settle last Tuesday at $183.55 per cwt, up from $181.72 a week earlier.
FUNDS LESS SHORT CORN
Meanwhile, managed money became less short than they were a week earlier, having a collective net short position last Tuesday of 46,150 contracts, down 10,017, or 17.8%, from 56,167 a week earlier.
Commercial traders had a total net short position last Tuesday of 171,867 contracts, up 5,097, or 3.06%, from 166,770 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 1,527 long positions, covering 11,544 short positions and putting on 13,544 spread positions. This left them with 11.9% of total long open interest, 15.5% of total short open interest and 13.9% of total spread open interest.
Commercial traders got to where they were last Tuesday by adding 22,608 long positions and 27,705 short positions, leaving them in charge of 10.5% of total long open interest and 43.9% of total short open interest.
The CME Group said corn open interest last Tuesday totaled 1.283 million contracts, up 30,682, or 2.45%, from 1.252 million a week earlier.
CME data also showed that the most-active Dec contract rose in value during the CFTC-reporting week to settle at $5.34 ½ a bushel, compared with $5.01 ½ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $181.38 per cwt to $184.27, compared with last week’s range of $178.00 to $188.83 per cwt. FOB dressed steers, and heifers went for $286.85 per cwt to $288.76, compared with $280.35 to $289.99.
The USDA choice cutout Monday was up $1.42 per cwt at $304.16 while select was up $0.26 at $276.99. The choice/select spread widened to $27.17 from $26.01 with 75 loads of fabricated product and 24 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 $1.90 to $2.05 a bushel over the Sep corn contract, which settled at $5.60 1/2 a bushel, up $0.33 1/2.
The CME Feeder Cattle Index for the seven days ended Friday was $241.93 per cwt, up $2.97. This compares with Monday’s Aug contract settlement of $243.25 per cwt, down $2.67 and Sep’s $246.62, down $2.65.