Funds Trim Long Cattle Position

Large commodity investment funds, called managed money, trimmed their net long live cattle futures position during the week ended Tuesday as commercial traders cut their net short position.

The Commodity Futures Trading Commission, in its weekly Commitments of Traders report Friday said that as of Tuesday, managed money’s net long position was 127,086 contracts, down 1,838, or 1.43%, from 128,924 the previous week.

Commercial traders, those who own the cattle and use futures primarily to hedge their cash position, trimmed their net short position by 3,481 contracts, or 1.64%, to 208,551 from 212,032.

Swap dealers, those who facilitate cash or over-the-counter trades, had a net long position of 99,859 contracts as of Tuesday, up marginally from 99,485 the previous week.

The CFTC said managed money arrived at its new net long position by liquidating 3,701 long positions, covering 1,863 short positions and unwinding 1,940 spread positions.  This left them representing 34.6% of total long open interest, 2.8% of total short open interest and 11.0% of total spread open interest.

Commercials got to their new position by liquidating 1,790 long positions and covering 5,271 short positions to leave them in control of 6.2% of total long open interest ant 58.3% of total short open interest.

Swap dealers added 200 long positions to their portfolio while covering 174 short positions and unwinding 452 spreads to leave them holding 25.6% of total long open interest 0.6% of total short open interest and 0.4% of total spread open interest.

The CME Group said total live cattle open interest as of Tuesday was 399,764 contracts, down 13,875, or 3.35%, from 413,639 the previous week.

During the CFTC week, the most-active Aug futures contract fell to close at $115.90 per cwt from a close of $120.87 the previous Tuesday.  This was a drop of $4.97, or 4.11%.  Since then, the contract set a one-month low of $113.40 on Thursday.

 

FUNDS SHORT CORN

 

Meanwhile, managed money extended its net short corn futures position to 50,327 contracts from 4,015 the previous week, a gain of 46,312, or 1,153.5%, the CFTC said.

Commercial traders cut their net short corn position to 232,173 contracts, a decline of 41,422, or 15.1%, from 273,595 the previous week.

The CFTC said managed money arrived at its new net short corn position by liquidating 17,103 long positions, adding 29,209 short positions and unwinding 12,499 spread positions.  This left them representing 17.4% of total long open interest, 21.0% of total short open interest and 7.4% of total spread open interest.

Commercials added 26,491 long positions and covered 14,931 shorts to be left in control of 22.5% of total long open interest and 38.8% of total short open interest.

Total open interest fell 22,928 contracts, or 1.59%, to 1.423 million from 1.446 million.

 

CASH CATTLE QUIET

 

Fed cattle sold on the livestock exchange video auction Wednesday at $123.00 per cwt for one- to nine-day delivery, down from $138.82 on June 8, the last time trading was reported on the exchange.

Cash cattle traded Wednesday at $122 to $123 per cwt on a live basis, down $10 from $132 to $133 the previous week, and at $195 to $196 dressed, down $9 to $10.

The USDA’s choice cutout Friday was down $3.13 per cwt at $239.75, while select was off $0.20 at $216.72.  The choice/select spread narrowed to $23.03 from $25.96 with 73 loads of fabricated product sold into the spot market.

The CME Feeder Cattle index for the seven days ended Thursday was $147.09 per cwt, down $1.09.  This compares with Friday’s Aug settlement at $144.95, down $1.50.