For the third straight week, large commodity index funds, or managed money, increased their collective net long live cattle futures position, while cattle owners boosted their total net short position.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report on Friday with data from the previous Tuesday.
MANAGED MONEY EXPANDS LONG CATTLE POSITION
As of Tuesday, managed money had a collective net long live cattle position of 112,803 contracts, up 7,477, or 7.10%, from 105,326 a week earlier. It was their largest long position in more than two years.
Cattle owners, also referred to as commercial traders, Tuesday had a total net short live cattle position of 144,688 contracts, up 4,955, or 3.55%, from 139,733 a week earlier. It was their largest net short position since March 7 when it was 147,173 contracts.
The CFTC said managed money arrived at their new cattle position by adding 4,626 long positions, covering 2,851 short positions and putting on 6,332 spread positions. This left them holding 37.0% of total long open interest, 2.9% of total short open interest and 15.2% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 1,049 long positions and adding 3,906 short positions, leaving them with 10.2% of total long open interest and 53.9% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 326,245 contracts, down 843, or 0.26%, from 327,088 a week earlier.
CME data also showed that the most-active Aug contract rose in value during the CFTC-reporting week to settle Tuesday at $175.50 per cwt, compared with $167.17 a week earlier.
MANAGED MONEY ALSO BUYS CORN
As of Tuesday, managed money had a collective net short Chicago corn position of 44,546 contracts, down 2,300, or 4.91%, from being short 46,846 contracts a week earlier.
At the same time, commercial traders were net short 176,706 contracts, up 4,090, or 2.37%, from 172,616 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 10,010 long positions, covering 12,310 short positions and putting on 15,887 spread positions. This left them holding 12.6% of total long open interest 15.9% of total short open interest and 9.4% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 12,194 long positions and covering 8,104 short positions, leaving them with 29.3% of long open interest and 42.7% of total short open interest.
The CME group said total corn open interest Tuesday was 1.324 million contracts, down from 1.328 million a week earlier.
The most-active Jul corn contract rose in value during the week to settle Tuesday at $6.08 a bushel, compared with $5.94 a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $177.80 per cwt to $188.00, compared with the previous week’s range of $171.68 to $183.03 per cwt. FOB dressed steers, and heifers went for $269.90 per cwt to $286.90, compared with $267.34 to $280.26.
The USDA choice cutout Thursday was up $3.54 per cwt at $328.73 while select was up $2.54 at $304.10. The choice/select spread widened to $24.63 from $23.63 with 77 loads of fabricated product and 32 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 $6.16 1/4 a bushel, up $0.06.
No deliveries were tendered against Jun live cattle Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $226.18 per cwt, up $3.98. This compares with Friday’s Aug contract settlement of $239.00 per cwt, up $0.35.