Managed money, a proxy for large commodity index funds, again liquidated a portion of their collective net long live cattle futures position during the week ended Tuesday. It was their fourth straight week of liquidation.
At the same time, commercial traders, who generally approach the futures market as a means to hedge a cash market position, covered a portion of their total net short live cattle position for the fourth straight week.
FUNDS SELL LIVE CATTLE
Tuesday, managed money had a collective net long live cattle position of 110,524 contracts, down 9,486, or 7.90%, from 120,010 a week earlier and down 46,312, or 29.5%, from the latest top of 156,836 on Jan. 28.
Meanwhile, commercial traders had a total net short position of 121,012 contracts, down 12,300, or 9.23%, from 133,312 a week earlier and down 30,149, or 19.9%, from the recent top of 151,161 on Jan. 14.
As of Tuesday, managed money held 130,118 long positions, 36.6% of total open interest, down 8,361 from a week earlier; they also held 19,594 short positions, 5.5% of total open interest, a gain of 1,125, and they had 52,239 spread positions, or 14.7% of total open interest, a gain of 6,123.
Commercials Tuesday, had 45,533 long positions, 12.8% of total live cattle open interest for a gain of 1,349 from a week earlier. They also had 166,545 short positions, or 46.8% of total open interest, a decline of 10,951.
The CFTC said total live cattle open interest Tuesday was 355,782 contracts, down 7,410, or 2.04%, from 363,192 a week earlier.
During the CFTC-reporting week, the most-active Apr contract declined in value to settle at $194.65 per cwt, compared with $195.72.
FUNDS DUMP LONG CORN POSITIONS
Tuesday, managed money had a collective net long corn position of 206,844 contracts, down 126,999, or 38.0%, from 333,843 a week earlier.
Commercials Tuesday had a total net short corn position of 573,992 contracts, down 95,073, or 14.2%, from 669,065 a week earlier.
As of Tuesday, managed money had 297,148 long corn positions, 16.1% of total open interest for a decline of 114,691 from a week earlier. They also had 90,304 short positions, or 4.9% of total open interest, for an increase of 12,308, and 383,874 spread positions, or 20.8% of total open interest for a gain of 16,160 contracts.
Commercials Tuesday held 385,230 long positions for 20.8% of total corn open interest, a gain of 20,625 from a week earlier. They also had 959,222 short positions, or 51.9% of total open interest for a decline of 74,448.
Total corn open interest was 1.849 million contracts, down from 1.917 a week earlier.
Most-active May fell to $4.51 ½ a bushel from $4.94 ¼.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $197.00 per cwt to $203.12, compared with the previous week’s range of $199.80 to $207.87 per cwt. FOB dressed steers, and heifers went for $310.62 per cwt to $313.95, compared with $313.22 to $319.42.
The USDA choice cutout Friday was up $1.78 per cwt at $314.90 while select was up $2.29 at $305.80. The choice/select spread narrowed to $9.10 from $9.61 with 88 loads of fabricated product and 13 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $381.61 per cwt, and 50% beef was $113.49.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.20 to $1.30 a bushel over the May corn contract, which settled at $4.69 1/4, up $0.05 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $273.77 per cwt, down $2.32. This compares with Friday’s Mar contract settlement of $276.97, up $2.95.