Funds Trim Net Long Cattle Position

Managed money, or large commodity funds, trimmed their net long live cattle futures positions during the week ended Tuesday for the third straight week, the Commodity Futures Trading Commission said Friday.

During the same week, the CFTC’s weekly Commitments of Traders report revealed that swap dealers continued to expand their net long cattle position for the eleventh straight week, and commercial traders reduced their net short position for the second straight week.

Managed money’s new net long cattle position was 91,986 contracts, down 414, or 0.45%, from last week’s 92,400, and the lowest net long position since the week ended Jan 3 when it was 90,333.

During the same week, swap dealers, or those who facilitate cash trades for a fee, nudged their net long futures position to 90,728 contracts, up 961, or 1.07%, from 89,767 the previous week.

Meanwhile, commercial traders, those who theoretically could make or take delivery of a futures contract, cut their net short position by 3,013 contracts, or 1.90%, to 155,169 from 158,182, taking them to their lowest net short position since the week ended Jan. 25 when it was 153,394.

The CFTC said managed money arrived at its new net long position by liquidating 1,531 long positions and covering 1,117 short positions while adding 1,199 spreads.  This left them representing 32.1% of total long open interest and 4l.0% of total short open interest.

Swap dealers’ new position came by adding 1,512 long positions and 551 short positions while unwinding 18 spreads.  This left them holding 29.2% of total long open interest and 1.4% of total short open interest.

Commercial traders got to their new position by liquidating 1,070 long positions and covering 4,083 short positions, leaving them in control of 7.3% of total long open interest and 54.8% of total short open interest.

The CME Group reported total cattle open interest during the week declined 441 contracts, or 0.13%, to 327,188 from 327,629.

CME Group data also showed that the most-active Apr delivery month extended the gains made in the previous Tuesday’s pop from a swing low.  Tuesday-to-Tuesday’s gain was $2.07, or 1.82%, to $116.07 from $114.00.

 

FUNDS PUSH NET LONG CORN POSITION

 

For the third straight week, managed money extended their net long corn position.  The latest push takes them to 106,758 contracts, up 9,559, or 9.83%, from 97,199 the week prior.

Commercials extended their net short position for the third straight week to 406,363 contracts, up 14,314, or 3.65%, from 392,049 the week before.

Managed money arrived at its new corn position by liquidating 2,404 long positions and covering 11,963 short positions while unwinding 11,963 spreads.  This left them representing 19.6% of total long open interest and 12.5% of total short open interest.

Commercials got to their new position by adding 29,974 long positions and 44,288 short positions, leaving them in control of 21.6% of total long open interest and 48.7% of total short open interest.

 

CASH CATTLE TRADE QUIET

 

Cash cattle trading was quiet Friday.

Average fed cattle exchange auction prices Wednesday were $3.09 per cwt higher at $122.11, versus $119.02 a week earlier.  Cash cattle trading was reported at mostly $124 to $125 per cwt on a live basis, compared with last week at $119 to $120.50.  Dressed-basis trading was at $195 to $196, compared with $185 to $188.

The USDA’s choice cutout Friday was up $2.77 per cwt at $198.96, while select was up $2.65 at $195.48.  The choice/select spread widened to $3.48 from $3.36 with 72 loads of fabricated product sold into the spot market.

The CME Feeder Cattle Index for the seven days ended Thursday was $127.20 per cwt, down $0.21.  This compares with Friday’s Mar settlement of $121.70, down $3.45.