For the second straight week, large commodity investment firms, known as managed money, took a collectively larger net long live cattle futures position in the week ended Tuesday, according to data released by the Commodity Futures Trading Commission in its weekly Commitments of Traders report Friday.
Also for the second straight week, hedgers, known as commercial traders, took on a collectively larger net short live cattle position.
FUNDS GET LONGER CATTLE
The new net long live cattle position for managed money Tuesday totaled 54,309 contracts, up 4,181, or 8.34%, from 50,128 a week earlier. It was their largest long position since April 20 when it was 66,819 contracts.
For commercials, their new net short position totaled 149,795 contracts, up from 146,626 a week earlier. It was their largest net short position since April 20 when it was 153,090 contracts.
The CFTC said managed money arrived at their new cattle position by adding 1,019 long positions, covering 3,162 short positions and putting on 2,451 spread positions. This left them in control of 28.1% of total long open interest, 11.2% of total short open interest and 11.8% of total spread open interest.
Commercials got to where they were by liquidating 913 long positions and adding 2,256 short positions, leaving them with 7.4% of total long open interest and 54.0% of total short open interest.
The CME Group said live cattle open interest Tuesday totaled 321,653 contracts, up 3,689, or 1.16%, from 317,964 a week earlier.
CME Group data also showed that the most actively traded Aug contract settled Tuesday at $119.72 per cwt, down from $122.05 a week earlier. However, last Wednesday, it made a swing high of $122.80 before dropping to Monday’s low of $117.95.
FUNDS STILL SELLING CORN
Meanwhile, managed money’s net long position Tuesday stood at 294,370 contracts, down from 311,523 a week earlier and down from their most recent high of 397,231 contracts on April 12. It was their lowest net long position since Dec. 22 when it was 247,108 contracts.
Commercials’ new net short position Tuesday was 676,942 contracts, down 46,469, or 6.42%, from 723,411 a week earlier and down from their most recent high of 760,358 on May 4.
The CFTC said managed money arrived at their new corn position by liquidating 15,400 long positions, adding 1,753 short positions and unwinding 457 spread positions. This left them in charge of 19.2% of total long open interest, 1.8% of total short open interest and 9.0% of total spread open interest.
Commercials added 24,860 long positions and covered 21.609 to end with 29.1% of long open interest and 67.9% of short open interest.
CATTLE, BEEF RECAP
Fed cattle traded last week at $119 to $120 per cwt on a live basis, up $1 to down $2 from the previous week. Dressed-basis trading was at $189 to $191 per cwt, steady to down $1.50.
The USDA choice cutout Friday was up $0.99 per cwt at $325.17, while select was up $0.70 at $302.31. The choice/select spread widened to $22.86 from $22.57 with 47 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from livestock feeding operations in the Southern Plains were not available but May 14 were at $1.05 to $1.19 a bushel. The Jul CBOT futures contract settled Friday at $6.59 1/2 a bushel, down $0.05.
The CME Feeder Cattle Index for the seven days ended Thursday was $135.20 per cwt up $1.34. This compares with Friday’s May contract settlement of $137.22 per cwt, up $1.47 and Aug’s $153.70, up $2.62.