Large commodity index funds, known as managed money, decreased their total net long live cattle position during the week ended Tuesday as hedgers trimmed their collective net short position, said the Commodity Futures Trading Commission.
The CFTC released the data Friday in its weekly Commitments of Traders report.
MANAGED MONEY SELLS CATTLE
As of Tuesday, managed money had a total net long live cattle position of 80,955 contracts, down 363, or 0.45%, from 81,318 a week earlier.
Commercial traders, those who own, or will own, the cattle and approach the futures market primarily as hedgers, trimmed their collective net short position to 151,363 contracts from 153,260 a week earlier. It was a decline of 1,897 contracts, or 1.24%.
The CFTC said managed money arrived at their new net long cattle position by liquidating 1,212 long positions, covering 849 short positions and putting on 4,899 spread positions. This left them holding 28.1% of total long open interest, 5.7% of total short open interest and 13.9% of total spread open interest.
Commercial traders reached their new cattle position by liquidating 34 long positions and covering 1,931 short positions, leaving them in charge of 11.5% of total long open interest and 53.4% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 361,049 contracts, up 1,822, or 0.51%, from 359,227 a week earlier.
CME data also showed that the most-active Apr contract declined during the CFTC-reporting week, settling Tuesday at $146.02 per cwt, compared with $146.90 a week earlier.
FUNDS BUY CORN
Tuesday, managed money had a collective net long Chicago corn position of 344,790 contracts, up 21,591, or 6.68%, from 323,199 a week earlier.
At the same time, commercials had a net short position totaling 720,462 contracts, up 41,561, or 6.12%, from 678,901 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 18,878 long positions, covering 2,713 short positions and unwinding 8,179 spread positions. This left them in charge of 24.5% of total long open interest, 2.4% of total short open interest and 7.5% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 41,418 long positions and adding 143 short positions, leaving them holding 21.8% of total long open interest and 67.8% of total short open interest.
The CME Group said corn open interest Tuesday totaled 1.564 million contracts, down 31,436, or 1.97%, from 1.595 million a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $142.00 to $144.23 per cwt, compared with the previous week’s range of $140.55 to $143.00. FOB dressed steers and heifers went for $221.90 to $224.84 per cwt, versus $218.70 to $224.02.
The USDA choice cutout Friday was down $0.97 per cwt at $258.27, while select was up $0.86 at $255.41. The choice/select spread narrowed to $2.86 from $4.69 with 72 loads of fabricated product and 32 loads of trimmings and grinds sold into the spot market.
The USDA reported that basis bids for corn from feeders in the Southern Plains were unchanged at $1.15 to $1.25 a bushel over the Mar futures and for southwest Kansas were unchanged at $0.20 over Mar, which settled at $6.59 1/2 a bushel, down $0.35 1/2.
Five heifer contracts were retendered and demanded for delivery against Feb contract at one on Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $160.58 per cwt down $1.24. This compares with Friday’s Mar contract settlement of $160.02 per cwt, up $0.92.