Large commodity index firms, better known as managed money, padded their collective net long live cattle position during the week ended last Tuesday, June 13, as cattle owners increased their total net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments Of Traders report on Friday.
FUNDS GET LONGER CATTLE
Last Tuesday, managed money had a collective net long live cattle futures position of 120,400 contracts, up 7,597, or 6.73%, from 112,803 a week earlier. It was their largest net long position in more than two years.
At the same time, cattle owners, known as commercial traders, had a total net short position of 148,540 contracts, up 3,852, or 2.66%, from 144,688 a week ago. It was their largest net short position since Feb. 22, 2022, when it was 151,363 contracts.
The CFTC said managed money arrived at their new cattle position by adding 7,386 long positions, covering 211 short positions and putting on 1,199 spread positions. This left them with 37.9% of total long open interest, 2.8% of total short open interest and 15.0% of total spread open interest.
Commercial traders got to where they were Tuesday by adding 3,046 long positions and 6,898 short positions, leaving them in charge of 10.7% of total long open interest and 54.2% of total short open interest.
The CME Group said total open interest last Tuesday was 341,051 contracts, up 14,806, or 4.54%, from 326,245 a week earlier.
CME data also showed that the most-active Aug contract declined in value during the CFTC-reporting week to settle last Tuesday at $173.92 per cwt, compared with $175.50 a week earlier.
FUNDS GET LONG CORN
Meanwhile, managed money got serious about buying corn futures, going net long from a net short position.
Last Tuesday, managed money had a collective net long Chicago corn position of 1,855 contracts, compared with a net short position of 44,546 a week earlier.
Commercial traders last Tuesday had a total net short corn position of 221,870 contracts, up 45,164, or 25.6%, from 176,706 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 8,551 long positions, covering 37,850 short positions and putting on 15,218 spread positions. This left them with 13.5% of total long open interest, 13.3% of total short open interest and 10.7% of total spread open interest.
Commercials got to where they were last Tuesday by liquidating 8,746 long positions and adding 36,418 short positions, leaving them holding 29.2% of total long open interest and 46.4% of total short open interest.
Total open interest last Tuesday was 1.296 million contracts, compared with 1.324c million a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $183.15 per cwt to $183.69, compared with last week’s range of $180.00 to $191.90 per cwt. FOB dressed steers, and heifers went for $294.01 per cwt to $294.46, compared with $284.05 to $299.87.
The USDA choice cutout Monday was down $2.95 per cwt at $340.14 while select was off $0.19 at $310.76. The choice/select spread narrowed to $29.38 from $32.49 with 82 loads of fabricated product and 19 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 $1.65 to $1.75 a bushel over the Jul corn contract, which settled at $6.40 1/4 a bushel, up $0.17.
No deliveries were tendered against Jun live cattle Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $223.76 per cwt, down $3.92. This compares with Friday’s Aug contract settlement of $234.92 per cwt, up $0.80.