Funds Still Liquidating Long Cattle Positions

For the seventh straight week, managed money, or large commodity investment funds, cut their net long live cattle futures position, bring it down to the lowest point since the week ended March 14.

The Commodities Futures Trading Commission said in its weekly Commitments of Traders report Friday that for week ended Tuesday, managed money’s new net long live cattle position was 99,357 contracts, compared with 94,694 4 ½ months earlier.  The new position was down 8,458, or 7.84%, from 107,815 the previous week and down 29,567, or 22.9%, from 128,924 the week ended June 16, the latest high.

Commercial traders, those who own the cattle at some point in their lives, also cut their net short position for the seventh straight week, bringing them to a net short position of 188,737 contracts, the lowest since the week ended Apr. 10 when it was 185,573.  The new position is down 2,565, or 1.34%, from 191,302 the previous week and down 24,616, or 11.5%, from the latest high of 213,353 the week ended June 6.

Swap dealers, those who facilitate cash or over-the-counter trades, had a net long live cattle position of 98,877 contracts, down 2,823, or 2.78%, from 101,700 the previous week.

The CFTC said managed money arrived at its new cattle position by liquidating 7,271 long positions, adding 1,187 short positions and unwinding 6,556 spreads.  This left them representing 31.1% of total long open interest, 2.9% of total short open interest and 7.1% of total spread open interest.

Commercial traders got to their new position by liquidating 1,555 long positions and covering 4,120 shorts, leaving them holding 7.7% of total long open interest and 61.3% of total short open interest.

Swap dealers liquidated 3,650 long positions in the latest week, while covering 827 shorts and unwinding 3,142 spreads, leaving them with 29.0% of total long open interest, 0.9% of total short open interest and 1.2% of total spread open interest.

The CME Group said total live cattle open interest during the CFTC week fell 20,654 contracts, or 5.53%, to 352,561 from 373,215.

During the week, the most-active Oct contract worked lower to set a swing low of $111.25 per cwt on Monday from the July 25 close of $112.77 before settling at $112.87 on Tuesday.

 

FUNDS SELL CORN

 

Meanwhile, managed money cut its net long corn futures position to 81,443 contracts from 106,678, a drop of 25,235, or 23.7%.

Commercials reduced their net short corn position to 337,305 contracts from 360,919, a cut of 23,614, or 6.54%.

CFTC data shows managed money arrived at its new position by adding 516 long positions, 25,751 short positions and 6,355 spread positions.  This left them representing 17.2% of total long open interest, 11.5% of total short open interest and 5.8% of total short open interest.

Commercials added 9,836 long positions while covering 13,778 shorts, leaving them with 24.8% of total long open interest and 48.3% of total short open interest.

 

CATTLE, BEEF RECAP

 

Only one lot of 54 head with one- to nine-day delivery sold on the livestock exchange video auction Wednesday averaging $116.00 per cwt, down $1.68 from $117.68 last week.

Cash cattle trading was reported at $116 to $118 per cwt on a live basis, about steady.  Dressed-basis trades were reported steady to $1 lower at $187 to $188.

The USDA’s choice cutout Friday was down $1.55 per cwt at $203.61, while select was off $0.47 at $197.31.  The choice/select spread narrowed to $6.30 from $7.38 with 75 loads of fabricated product sold into the spot market.

The CME Feeder Cattle index for the seven days ended Friday was $151.99 per cwt, up $1.12.  This compares with Friday’s Aug settlement at $149.95, down $0.70.