Managed money, or large investment funds, trimmed their net long live cattle position for the second straight week during the week ended Tuesday, while producers and other commercial traders extended their net short positions.
The Commodity Futures Trading Commission Friday said that for the week ended Tuesday, managed money’s net long live cattle position was 40,932 contracts, down 1,452, or 3.43%, from 42,384 the previous week and down from the annual total of 42,875 two weeks ago.
At the same time, commercial traders, those who theoretically could make or take delivery of a futures contract, extended their net short position to 75,958 contracts from 73,365, a gain of 2,593, or 3.53%.
The CFTC said managed money arrived at its new net long live cattle position by adding 2,225 long positions along with 3,677 short positions and 6,955 new spread positions. This left them representing 29.4% of total long open interest and 12.8% of total short open interest.
Commercial traders got to their new net short positions by liquidating 5,501 long positions and covering 2,908 short positions, leaving them in control of 11.5% of total long open interest and 42.3% of total short open interest, the CFTC said.
The CME Group said total live cattle open interest during the week rose 4,863 contracts or 2.02%, to 246,157 contracts from 241,294.
CME Group data also showed that the most-active Oct contract price closed lower every day, extending losses to within reach of the contract low of $105.25 per cwt set July 21.
MAJOR CORN POSITIONS CHANGE LITTLE
The net short or long positions of major trader groups changed little during the week ended Tuesday as the most-active Dec contract showed a nearby peak before resuming its downtrend.
Managed money had a net short corn position of 158,486 contracts as of Tuesday down only 6,623, or 4.01%, from 165,109 the previous week.
During the same CFTC reporting week, commercial traders increased their net short position to 181,662 contracts from 181,017, a gain of only 645, or 0.36%.
The CFTC said managed money arrived at its new net short corn position by adding 19,637 long positions and 13,014 short positions while unwinding 3,600 spread positions. This left them representing 12.9% of total long open interest and 24.4% of total short open interest.
Commercials got to their new net short corn position by liquidating 10,170 long positions and covering 9,525 short positions to leave them in control of 26.3% of total long open interest and 39.6% of total short open interest.
The CME Group reported total corn open interest during the week declined 9,927 contracts, or 0.72%, to 1.370 million from 1.380 million.
The CME also reported that the most-active Dec contract closed at $3.37 ¼ a bushel on Tuesday, unchanged from the previous Tuesday. In between, it reached a swing high of $3.44 ¼ on Friday. The contract has since dropped and may be ready to challenge the contract low of $3.22 ½ set on Aug. 12.
CASH CATTLE MARKETS QUIET
Cash cattle markets Friday were quiet after trading $3 per cwt lower Wednesday in a range of $114.50 to $115.50 with most at $115. On a dressed basis, cattle last week traded lightly at $179 in Nebraska after trading at $181 to $183, down $3 to $4, on Wednesday.
The USDA’s choice cutout Friday was $0.88 per cwt lower at $199.48, while select was off $0.58 at $193.57. The choice/select spread narrowed to $5.91 from $6.21 with 106 loads of fabricated product sold into the spot market.
The CME Feeder Cattle Index for the seven days ended Thursday was $146.11 per cwt, down $1.18. This compares with the Aug settlement Friday of $146.11, down $0.61.