Large commodity index firms, better known as managed money, unloaded live cattle futures contracts in a big way the last two weeks as hedgers covered their own short positions, according to data from the Commodity Futures Trade Commission Friday.
The data came from the CFTC’s Commitments of Traders report Friday, which had been interrupted for more than a month as one of the reporting firms dealt with a cyber attack. The Friday report outlines the positions of four classes of traders as of he previous Tuesday.
FUNDS GET OUT OF CATTLE
Managed money’s new net long live cattle position Tuesday stood at 62,677 contracts, down 28,789, or 31.5%, from 91,466 a week earlier, which was down 19,987, or 17.9%, from the most recent high of 111,453 the week before that. The new position is the smallest since Dec. 6 when it was 60,255 contracts.
Meanwhile, hedgers, often called commercial traders, had a net short position Tuesday of 110,641 contracts, down 22,733, or 17.0%, from 133,374 a week earlier, which was down 13,799, or 9.38%, from 147,173 the week before that. It was their smallest net short position since Jan. 24 when it was 106,006 contracts.
The CFTC said managed money arrived at their new cattle position by liquidating 27,310 long positions from the previous week, adding 1,479 short positions and unwinding 6,182 spread positions. This left them holding 27.7% of total long open interest, 7.9% of total short open interest and 18.7% of total spread open interest.
Commercial traders got to where they were Tuesday by adding 4,577 long positions and covering 18,156 short positions, leaving them in charge of 11.7% of total long open interest and 46.7% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 316,104 contracts, down from 352,209 a week earlier.
CME Group data also showed that the most-active Jun cattle contract declined in value during the last CFTC-reporting week to settle Tuesday at $156.15 per cwt, compared with $157.75 a week earlier.
FUNDS ALSO SELL MORE CORN
Managed money’s new Chicago corn position Tuesday was net short by 45,896 contracts, down 14,008, or 23.4%, from a net short position the previous week of 59,904 contracts and stopping a four-week selloff.
Commercials had a total net short corn position Tuesday of 212,810 contracts, up 13,167, or 6.60, from 199,643 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 9,589 long positions, covering 4,419 short positions and putting on 7,360 spread positions.
Commercials liquidated 5,483 long positions and added 7,684 short positions.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $164.03 to $165.84 per cwt, compared with the previous week’s range of $161.55 to $167.74. FOB dressed steers, and heifers went for $257.00 to $262.24 per cwt, versus $258.70 to $266.29.
The USDA choice cutout Friday was down $2.90 per cwt at $279.88 while select was off $0.14 at $268.75. The choice/select spread narrowed to $11.13 from $13.89 with 84 loads of fabricated product and 24 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.60 to $1.70 a bushel over the May corn contract. Bids in Kansas were steady at $0.75 over May, which settled at $6.43 a bushel, up $0.11 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $188.85 per cwt, up $1.07. This compares with Friday’s Mar contract settlement of $189.65 per cwt, up $0.62 and Apr’s $194.80, down $0.20.