Large commodity investment funds, called managed money, trimmed its net long live cattle position for the third straight week during the week ended Tuesday.
The data was released Friday by the Commodity Futures Trading Commission in its weekly Commitments of Traders report Friday.
The CFTC said managed money’s net long live cattle futures position Tuesday amounted to 86,701 contracts, down 9,046, or 9.45%, from 95,747 the previous Tuesday. It was the lowest position since Jan 30 when it was 86,088 contracts.
At the same time, commercial traders, those who theoretically could make or take delivery of a futures contract since they own the cattle at some point in their lives and principally are hedgers, cut their net short position for the third straight week. Their new net short cattle position was 178,986 contracts, down 9,554, or 5.07%, from 188,540 the previous week. The last time their net short position was smaller was the week ended Jan. 16 when it was 174,752 contracts.
The CFTC said managed money arrived at its new net long position by liquidating 9,197 positions, covering 151 short positions and unwinding 1,020 spread positions. This left them representing 27.1% of total long open interest, 3.2% of total short open interest and 10.8% of total spread open interest.
Commercial traders got to where they were by adding 1,464 long positions and covering 8,090 short positions to leave them in control of 7.5% of total long open interest and 57.0% of total short open interest.
The CME Group said total live cattle open interest during the week ended Tuesday fell 10,401 contracts, or 2.79%, to 362,173 contracts from 372,574.
The CME Group’s most-active Apr live cattle contract declined during the week to $121.90 per cwt from $122.82, a dip of $0.92, or 0.75%.
FUNDS KEEP BUYING CORN
Meanwhile, managed money advanced its net long CBOT corn position for the eighth straight week to its largest point in more than a year. The new position is long by 237,643 contracts. This was up 74,029, or 45.2%, from 163,614 the previous week.
Commercial traders moved their net short corn position to 596,587 contracts, up 72,739, or 13.9%, during the week from 524,848, the previous Tuesday.
The CFTC said managed money arrived at its new corn position by adding 35,020 positions, covering 39,009 short positions and placing 27,271 new spread positions. This left them representing 20.4% of total long open interest, 7.6% of total short open interest and 9.4% of total spread open interest.
At the same time, commercial traders got to where they were by adding 1,687 long positions and 73,426 short positions to leave them in control of 21.6% of total long open interest and 53.6% of total short open interest.
The CME Group said total corn open interest during the CFTC week rose 115,924 contracts, or 6.65%, to 1.860 million from 1.744 million.
CATTLE, BEEF RECAP
A total of 113 fed cattle sold Wednesday on the Livestock Exchange Video Auction at $127 per cwt, up $1 from a week earlier.
Cash sales last week were steady to $1.00 per cwt higher at $126 to $128 on a live basis. Dressed-basis trading was reported at $205 to $207, up $1 to $2.50.
The USDA’s choice cutout Friday was up $0.60 per cwt at $225.59, while select was up $0.55 at $216.86. The choice/select spread widened to $8.73 from $8.68 with 57 loads of fabricated product sold into the spot market.
The CME Feeder Cattle index for the seven days ended Thursday, was $142.71 per cwt, down $0.10. This compares with Friday’s Mar settlement of $139.97, down $0.65.