Large commodity index funds, known as managed money, decreased their collective net long live cattle futures positions during the week ended Tuesday as hedgers covered many of their net short positions.
That was according to data from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS SELL CATTLE FUTURES
Tuesday, managed money had a collective net long live cattle position of 65,041 contracts, down 3,922, or 5.69%, from 68,963 a week earlier. It was their first decline after four weeks of increases.
At the same time, hedgers, better known as commercial traders, had a total net short position of 91,984 contracts, down 2,617, or 2.77%, from 94,601 a week earlier.
The CFTC said managed money arrived at their new live cattle position by liquidating 1,928 long positions, adding 1,994 short positions and putting on 1,562 spread positions. This left them in charge of 26.4% of total long open interest, 6.6% of total short positions and 15.6% of total spread open interest.
Commercial traders got to where they were by adding 1,371 long positions and covering 1,246 short positions, leaving them with 12.9% of total long open interest and 41.0% of total short open interest.
The CFTC also said total live cattle open interest at the CME Tuesday was 327,742 contracts, up 4,456, or 1.38%, from 323,286 a week earlier.
CME Group data showed that the most-active Oct contract rose during the CFTC-reporting week to settle Tuesday at $184.25 per cwt, up from $183.30 a week earlier.
FUNDS COVER CORN SHORTS
Tuesday, managed money had a collective net short Chicago corn futures position of 352,772 contracts, down 43,647, or 12.2%, from 356,415 a week earlier.
Meanwhile, commercials had a total net long position of 20,967 contracts, down 1,715, or 7.56%, from 22,682 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 6,494 long positions, covering 10,137 short positions and putting on 33,245 spread positions. This left them with 9.3% of total long open interest, 31.7% of total short open interest and 31.7% of total spread open interest.
Commercials got to where they were Tuesday by adding 16,891 long positions and 18,606 short positions, leaving them holding 28.5% of total long open interest and 27.2% of total short open interest.
The CFTC also said total corn open interest at the CME was 1.593 million contracts, up 11,782, or 0.75%, from 1.562 million a week earlier.
The most-active Dec corn contract rose during the DVTC-reporting week to settle at $43.08 ¾ a bushel, compared with $4.08 ½ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $188.00 per cwt to $200.95, compared with the previous week’s range of $188.36 to $200.93 per cwt. FOB dressed steers, and heifers went for $297.15 per cwt to $309.23, compared with $300.74 to $312.62.
The USDA choice cutout Friday was down $2.32 per cwt at $313.83 while select was down $0.66 at $298.80. The choice/select spread narrowed to $15.03 from $16.69 with 124 loads of fabricated product and seven loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $375.44 per cwt, and 50% beef was $130.22.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.67 to $1.80 a bushel over the Sep corn contract, which settled at $3.90 1/2 a bushel, down $0.00 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $259.18 per cwt, down $0.08. This compares with Friday’s Aug contract settlement of $255.60, down $0.62.