Large commodity investment firms, known as managed money, trimmed their collective net long live cattle futures position in the week ended Tuesday, as hedgers cut their net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS PARE CATTLE POSITION
Managed money’s new combined net long live cattle position Tuesday came to 83,878 contracts, down 3,235, or 3.71%, from 87,113 a week earlier. It was their first decline after five weeks of increases.
At the same time, those hedgers, the ones who theoretically could make or take delivery of a futures contract and known as commercial traders, cut their collective net short position to 161,785 contracts, down 4,950, or 2.97%, from 166,735 a week earlier. It was their first decline after five weeks of increases.
The CFTC said managed money arrived at their new position by liquidating 2,468 long positions, adding 767 short positions and putting on 4,394 spread positions. This left their total position representing 30.2% of total long open interest, 5.2% of total short open interest and 12.1% of total spread open interest.
Commercials got to where they were by liquidating 1,223 long positions and covering 6,173 short positions, leaving them in charge of 9.8% of total long open interest and 58.0% of total short open interest.
The CME Group listed live cattle open interest as of Tuesday at 335,778 contracts, up 340, or 0.10%, from 335,438 a week earlier.
CME data also showed the most-active Apr futures contract declined in value during the CFTC reporting week to settle Tuesday at $121.20 per cwt, down from $125.80.
FUNDS KEEP CORN POSITION NEAR FLAT
For the sixth straight week, managed money kept their joint Chicago corn position relatively flat. Their new position Tuesday was 345,060 contracts, down 3,431, or 0.98%, from 348,491 a week earlier.
Commercial traders’ new net short corn position Tuesday stood at 783,355 contracts, up 16,000, or 2.09%, from 767,355 a week earlier and their largest net short position in more than a year.
The CFTC said managed money arrived at their new corn position by liquidating 7,464 long positions, covering 4,033 short positions and putting on 12,856 new spread positions. This left them with 19.1% of total long open interest, 1.2% of total short open interest and 9.6% of total spread open interest.
Commercials got to their new corn position by liquidating 13,984 long positions and adding 2,016 short positions, leaving them in charge of 26.1% of total long open interest and 66.7% of total short open interest.
CATTLE, BEEF RECAP
Fed cattle trading was reported in the Plains last week at mostly $114 up to $115.50 per cwt on a live basis, down $0.50 to up $1 from the previous week. Dressed-basis trading was seen at $181, to $182, steady to up $1.
The USDA choice cutout Friday was up $0.14 per cwt at $240.53, while select was up $0.94 at $229.73. The choice/select spread narrowed to $10.80 from $11.60 with 51 loads of fabricated product and seven 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 unchanged at $1.00 to $1.25 a bushel over the Mar CBOT futures contract, which settled at $5.55 1/2 a bushel, up $0.00 3/4.
Five steer contracts were tendered for delivery against the Feb futures contract Friday. All were demanded.
The CME Feeder Cattle Index for the seven days ended Thursday was $138.91 per cwt, down $0.57. This compares with Friday’s Mar contract settlement of $138.67 per cwt, down $1.75.