For the fourth straight week, managed money, a proxy for large commodity index funds, trimmed their collective net long live cattle futures positions in the week ended Tuesday.
At the same time, cash cattle traders, called commercial traders, cut their total net short live cattle futures position, according to data from Friday’s Commitments of Traders report from the Commodity Futures Trading Commission.
FUNDS CUT LONG LIVE CATTLE POSITIONM
Tuesday, managed money had a collective net long live cattle position of 116,107 contracts, down 4,435, or 3.68%, from 120,542 a week earlier to their smallest net long live cattle position since March 24 when it was 107,593 contracts.
At the same time, commercial traders had a total net short live cattle position of 122,247 contracts, down 8,460, or 6.47%, from 130,707 a week earlier and their smallest net short position since Dec. 30 when it was 121,920 contracts.
Broken down, managed money’s position Tuesday held 129,374 long positions, or 37.7% of total open interest, for a decline of 6,440 from a week earlier. It also held 13,267 short positions, or 3.9% of total open interest, for a decline of 2,005 contracts, and it held 41,658 spread positions, or 12.1% of total open interest, for a decline of 6,328.
Commercials meanwhile, held 34,678 long live cattle positions, or 10.1% of total open interest, for a decline of 4,217 contracts, and they held 156,925 short positions, or 45.7% of total open interest, for a decline of 12,677 contracts.
At the CME Tuesday, total live cattle open interest was 343,287 contracts, down 6,640, or 1.92%, from 349,927 a week earlier.
During the CFTC-reporting week, the Aug live cattle contract rose in value to $239.65 per cwt from $239.15.
MORE CORN SELLING
Another week of selling brought managed money’s total net long corn holdings to 120,136 contracts, down 91,201, or 43.2%, from 211,337 a week earlier and their smallest net long position since March 30 when it was 52,243 contracts.
At the same time, commercials held 456,684 net short corn positions, down 122,130, or 21.1%, from 578,814 a week earlier and their smallest position since April 21 when it was 511,008 contracts.
Broken down, managed money’s net long position Tuesday held 313,131 contracts, or 16.7% of total open interest, for a decline of 57,827 contracts. It also held 192,995 short positions, or 10.3% of total open interest, for a gain of 33,374, and it held 283,298 spread positions, or 15.1% of total open interest, for a gain of 12,723.
Commercials, meanwhile, held 390,543 long corn positions, or 20.8% of total open interest, for a gain of 25,453, and it hele 847,227 short positions, or 45.2% of total open interest, for a decline of 96,677.
At the CME Tuesday, total corn open interest was 1.875 million contracts, up 11,000, or 0.59%, from 1.864 million a week earlier.
The Jul corn contract fell during the CFTC-reporting week to settle Tuesday at $4.40 ½ a bushel, down from $4.57 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 $256.34 per cwt to $262.23, compared with the previous week’s range of $236.71 to $264.00 per cwt. FOB dressed steers and heifers went for $403.95 per cwt to $409.71, compared with $407.61 to $416.65.
The USDA choice cutout Friday was up $0.04 per cwt at $392.70 while select was down $0.35 at $382.69. The choice/select spread widened to $10.01, from $9.62 with 79 loads of fabricated product and 12 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $457.02 per cwt, and 50% beef was $186.79.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.20 to $1.40 a bushel over the Jul corn contract, which settled at $4.17 1/2 a bushel, down $0.07.
The CME Feeder Cattle Index for the seven days ended Thursday was $361.30 per cwt, up $2.17. This compares with Friday’s Aug contract settlement of $353.90, up $0.52.