Managed money and commercial traders bought live cattle futures in the week ended Tuesday, the Commodity Futures Trading Commission said Friday, a unusual event in that the two often work in different directions.
As of Tuesday, managed money, or large speculative firms, had a net long position of 21,189 live cattle contracts, up 1,369, or 6.91%, from 19,820 the previous week. It was the first week of increases since peaking at 92,553 for the week ended June 2.
Commercial traders, those who theoretically could make or take delivery of a futures contract, cut their net short positions to 64,199 contracts, from 66,351 the previous week, a decline of 2,152, or 3.24%. Essentially, the latest week’s trading resumes a downtrend in commercial net short positions that began with the week ended Tuesday, Jun 16.
During the latest reporting week, the most-active Oct futures contract fell from a high on Aug. 11 of $150.45 per cwt to a low of $146.87. In the process, it filled two gaps on daily bar charts and only stabilized late last week. The latest swing high of $150.85 occurred on Monday, Aug. 9.
The CFTC reported that managed money arrived at its new net long position by buying 463 new long positions while covering 906 short positions and raising its spread positions by 1,411. This left it representing 25.8% of total long open interest and 16.5% of total short open interest.
Commercials, sold 931 long positions and covered 3,083 short positions during the week to leave them representing 12.6% of total long open interest and 40.6% of total short open interest.
Total open interest declined 413 contracts, or 0.18%, to during the latest reporting week to 228,827 from 229,240.
MANAGED MONEY CUTS LONG CORN EXPOSURE
During the latest reporting week, managed money cut its net long corn position by 21,268 contracts, or 23.1%, to 70,855 from 92,153. It was the fourth straight decline in net long positions since peaking at 245,791 the week ended July 21.
At the same time, commercial traders decreased their net short positions to 324,657 contracts from 356,944 the previous week, a decline of 32,287, or 9.05%, since peaking at 451,212 the week ended July 21.
During the latest reporting week, the most-active Dec corn futures contract fell to a spike low of $3.46 ½ a bushel on Wednesday, Aug. 12, from its high of $3.88 ½ on Tuesday, Aug. 11. Since bottoming, the contract rose to Tuesday’s high of $3.68 ¼.
Total corn open interest during the latest reporting week declined 14,710 contracts, or 1.06%, to 1.377 million from 1.391 million.
In its breakdown, the CTFC said managed money arrived at its latest position by adding 2,105 long positions and 23,403 short positions while cutting 23,050 spread positions. This left them representing 19.1% of total long open interest and 13.9% of total short open interest.
At the same time, commercial traders arrived at their new positions by adding 19,693 new long positions while covering 12,594 short positions. This left them representing 23.1% of total long open interest and 46.7% of total short open interest.
CASH FED CATTLE TRADE LOWER
Cash cattle markets last week traded $3 to $4 per cwt lower on a live basis at mostly $145 to $147.50 with some in Nebraska up to $149. the range is $2 to $3 lower than last week’s $148 to $152. Cattle also traded at $232 to $234 on a dressed basis last week, about $2 to $4 lower.
The USDA reported lower boxed beef prices Friday with choice down $1.56 per cwt at $244.90 and select off $0.70 at $234.88.
The CME Feeder Cattle Index for the seven days ended Thursday was $215.25 per cwt, down $0.72. This compares with the Aug settlement Friday of $212.00, down $1.20.