Funds Take Small Long Cattle Position

After hitting a low of 7,092 contracts two weeks ago, managed money’s new net long live cattle futures position was up to 11,086 as of Tuesday, according to the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.

Managed money, or large commodity investment funds, expanded their net long live cattle futures position as of Tuesday from 8,116 a week earlier, a gain of 2,970, or 36.6%.

At the same time, commercial traders, those who own the cattle at some point and primarily are hedgers, had a net short position on Tuesday of 103,945 contracts, down 1,273, or 1.21%, from 105,218 the previous Tuesday.

The CFTC said managed money arrived at its new position by adding 1,942 long positions, covering 1,028 short positions and unwinding 4,933 spread positions.  This left them representing 22.3% of total long open interest, 19.1% of total short open interest and 11.1% of total spread open interest.

The CFTC also said commercial traders got to their new cattle position by adding 582 long positions and covering 691 short positions, leaving them in control of 12.7% of total long open interest and 42.2% of total short open interest.

The CME Group said total live cattle open interest as of Tuesday was 352,568 contracts, down 6,727, or 1.87%, from 359,295 the previous Tuesday.

CME Group data also showed the most-active Aug contract had a net gain during the week ended Tuesday, settling at $101.45 per cwt, up $0.80, or 0.79%, from $100.65 the previous Tuesday.

 

FUNDS KEEP CORN POSITION NEAR STEADY

 

Despite a small decline in the week ended Tuesday, managed money kept their net long CBOT corn futures position near steady.  Their net long corn position has held within a narrow range since early April.

Managed money’s new net long corn position Tuesday was 180,790 contracts, down 10,145, or 5.31%, from 190,935 the previous Tuesday.

The new net short position for commercial traders Tuesday was 561,144 contracts, down 15,015, or 2.61%, from 576,159 the previous Tuesday.

The CFTC said managed money arrived at its new corn position by liquidating 4,525 long positions, adding 5,620 short positions and placing 9,791 new spread positions.  This left them representing 17.1% of total long open interest, 7.9% of total short open interest and 11.8% of total spread open interest.

Commercials got to their new short corn position by adding 42,761 long positions and 27,746 short positions, leaving them in control of 22.5% of total long open interest and 51.1% of total short open interest.

Total corn open interest as of Tuesday was 1.961 million contracts, up from 1.885 million the week previous, a gain of 75,482, or 4.00%.

The most-active Jly contract had a net loss during the week, settling on Tuesday at $4.00 a bushel compared with $4.04 ¾ a week earlier after setting a 10-month high of $4.12 1/4.

 

CATTLE, BEEF RECAP

 

Only 225 head of fed cattle sold Wednesday on the Livestock Exchange Video Auction at $110 per cwt, versus sales four weeks previous at $122.40.

Cash cattle traded last week at $110 to $111.50 per cwt on a live basis, steady to up $1.50 from the previous week.  Dressed-basis trading was seen at $177 to $178, steady to up $1.

The USDA choice cutout Friday was down $0.67 per cwt at $227.53, while select was up $0.33 at $204.80.  The choice/select spread narrowed to $22.73 from $23.73 with 69 loads of fabricated product sold into the spot market.

The CME Feeder Cattle index for the seven days ended Thursday, was $136.17 per cwt, up $1.35.  This compares with Friday’s Aug settlement of $146.32, down $1.07.