During the week ended Tuesday June 20, managed money, a proxy for large commodity index firms, reduced their collective net long position in live cattle futures while cattle owners trimmed their total net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS SELL CATTLE
As of Tuesday, managed money had a collective net long live cattle position of 111,401 contracts, down 8,999, or 7.47%, from 120,400 a week earlier. It was their first decline in their net long position after five weeks of gains.
At that time, cattle owners, often called commercial traders, had a total net short live cattle position of 143,552 contracts, down 4,991, or 3.36%, from 148,543 a week earlier. It was their first decline after three weeks of increases.
The CFTC said managed money arrived at their new cattle position by liquidating 6,789 long positions, adding 2,210 short positions and unwinding 11 spread positions. This left them in charge of 36.8% of total long open interest, 3.4% of total short open interest and 15.2% of total spread open interest.
Commercial traders got to where they were last Tuesday by liquidating 486 long positions and covering 5,474 short positions, leaving them with 10.7% of total long open interest and 53.2% of total short open interest.
The CME Group said total live cattle open interest last Tuesday was 340,307 contracts, down 744, or 0.22%, from 341,051 a week earlier.
The most-active Aug live cattle contract declined in value during the CFTC-reporting week to settle last Tuesday at $169.70 per cwt, compared with $170.97 a week earlier.
FUNDS BUY CORN
As of last Tuesday, managed money had a collective net long Chicago corn position of 66,061 contracts, up 64,206 from 1,855 a week earlier.
Commercials, last Tuesday, had a total net short position last Tuesday of 296,892 contracts, up 73,022, or 32.9%, from 221,870 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 46,387 long positions, covering 17,819 short positions and unwinding 4,064 spread positions. This left them with 17.1% of total long open interest, 12.0% of total short open interest and 10.5% of total spread open interest.
Commercials got to where they were last Tuesday by liquidating 29,889 long positions and adding 45,233 short positions, leaving them holding 27.0% of total long open interest and 50.0% of total short open interest.
The CME Group said total corn open interest last Tuesday was 1.286 million contracts, down 10,000, or 0.77%, from 1.296 million a week earlier.
The most-active Dec contract rose during the week to settle at $5.97 ½ a bushel, compared with $5.51 ¼.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $182.02 per cwt to $182.02, compared with last week’s range of $182.00 to $191.00 per cwt. FOB dressed steers, and heifers went for $287.29 per cwt to $287.86, compared with $286.23 to $295.18.
The USDA choice cutout Monday was down $0.97 per cwt at $333.04 while select was off $0.29 at $299.67. The choice/select spread narrowed to $33.37 from $34.05 with 61 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were down $0.05 at $1.30 to $1.50 a bushel over the Jul corn contract, which settled at $6.37 1/4 a bushel, up $0.06 1/2.
No deliveries were tendered against Jun live cattle Monday.
The CME Feeder Cattle Index for the seven days ended Friday was $221.45 per cwt, up $0.45. This compares with Monday’s Aug contract settlement of $233.67 per cwt, down $0.27, and Sep’s $237.50, down $0.20.