Large commodity index funds, also known as managed money, further trimmed their collective net long live cattle futures position during the week ended last Tuesday, May 26, as cash cattle traders cut their total net short position.
That was according to data supplied by the Commodity Futures Trading Commission in its weekly Commitments of Traders report, which normally is released on Friday but was delayed until Monday by the observance of the Memorial Day holiday on Monday last week.
FUNDS SHAVE NET LONG LIVE CATTLE POSITION
Last Tuesday, managed money had a collective net long live cattle position of 120,542 contracts, down 7,205, or 5.64%, from 127,747 a week earlier. It was their smallest net long position since March 31 when it was 119,553 contracts.
At the same time, cash cattle traders, known as commercial traders, had a total net short live cattle position of 130,707 contracts, down 7,230, or 5.24%, from 137,937 a week earlier. It was their smallest net short position since March 24 when it was 124,859 contracts.
Broken down, managed money’s net long position held 135,814 long positions, or 38.8% of total open interest, for a decline of 5,676 contracts from a week earlier. It also held 15,272 short positions, o4 4.4% of total open interest, for a gain of 1,529. And, it held 47,986 spread positions, or 13.7% of total open interest, for a decline of 7,699.
Commercials last Tuesday held 38,895 long positions, or 11.1% of total open interest, for a gain of 5,300 from a week earlier. They also held 169,602 short positions, or 48.5% of total open interest, for a decline of 1,930.
Live cattle open interest at the CME last Tuesday totaled 349,927, down 14,615, or 4.01%, from 364,542 a week earlier.
The Aug live cattle contract declined in value during the CFTC-reporting week to settle last Tuesday at $239.15 per cwt from $247.25.
FUNDS SELL CORN
Last Tuesday, managed money had a collective net long corn futures position of 211,337 contracts, down 82,005, or 28.0%, from 293,342 a week earlier.
Meanwhile, commercial traders had a total het short corn position of 478,814 contracts, down 162,946, or 25.4%, from 641,760 a week earlier.
Broken down, managed money held 370,958 long corn positions, or 19.9% of total open interest, for a decline of 59,862. They also held 159,621 short positions, or 8.6% of total open interest, for a gain of 22,143, and they held 270,567 spread positions, or 14.5% of total open interest, for a gain of 3,742 from a week earlier.
Commercials last Tuesday held 365,090 long positions, or 19.6% of total open interest, for a gain of 21,856, and they held 943,904 short positions, or 50.6% of total open interest, for a decline of 41,090.
At the CME last Tuesday, total corn open interest was 349,927 contracts, down 14,615, or 4.01%, from 364,542 a week earlier.
The Jul corn contract declined during the CFTC-reporting week to settle at $4.57 ½ a bushel, compared with $4.75 ¼ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $257.82 per cwt to $258.38, compared with last week’s range of $236.71 to $264.00 per cwt. FOB dressed steers and heifers went for $407.20 per cwt to $407.58, compared with $407.61 to $416.65.
The USDA choice cutout Monday was up $1.36 per cwt at $392.83 while select was down $0.09 at $383.09. The choice/select spread widened to $9.74, from $8.29 with 60 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $456.59 per cwt, and 50% beef was $184.09.
The USDA said basis bids for corn from feeders in the Southern Plains were up $0.08 to $0.20 at $1.20 to $1.40 a bushel over the Jul corn contract, which settled at $4.44 a bushel, down $0.02 3/4.
The CME Feeder Cattle Index for the seven days ended Friday was $367.143 per cwt, down $6.26. This compares with Monday’s Aug contract settlement of $351.55, up $3.12.