Large commodity index funds, known as managed money, cut their collective net long position in live cattle futures during the week ended Tuesday, Jan. 11, as hedgers also reduced their collective net short position.
The information came from data released by the Commodity Futures Trading Commission in its weekly Commitments of Traders report.
MANAGED MONEY SELLS CATTLE
As of last Tuesday, managed money had a collective net long live cattle position of 58,008 contracts, down 11,454, or 16.5%, from 69,462 a week earlier. It was their lowest net long position since Nov. 16 when it was 48,075 contracts.
At the same time, hedgers, also known as commercial traders, had a collective net short position of 138,013 contracts, down 4,074, or 2.87%, from 142,087 a week earlier. It was their smallest net short position since Nov. 23 when it was 137,703 contracts.
The CFTC said managed money arrived at their new cattle position by liquidating 7,312 long positions, adding 4,142 short positions and unwinding 9,541 spread positions. This left them with 25.9% of total long open interest, 7.9% of total short open interest and 12.9% of total spread open interest.
Commercial traders got to where they were last Tuesday by adding 7,104 long positions and 3,030 short positions, leaving them with 10.8% of total long open interest and 53.6% of total short open interest.
The CME group said live cattle open interest last Tuesday totaled 322,662 contracts, down 7,968, or 2.41%, from 330,630 a week earlier.
CME data also showed that the most-active Apr cattle contract declined during the week ended last Tuesday to settle at $141.20 per cwt, compared with $142.67.
FUNDS SELL CORN
Managed money also sold down their collective net long Chicago corn position during the week ended last Tuesday to 334,776 contracts, compared with 355,355 a week earlier. This was a decline of 20,579, or 5.79%.
Commercial traders last Tuesday had a collective net short corn position of 663,283 contracts, up from 655,727 a week earlier, a gain of 7,556, or 1.15%.
The CFTC said managed money arrived at their new corn position by liquidating 16,443 long positions, adding 4,136 short positions and putting on 557 spread positions. This left them holding 24.3% of total long open interest, 2.1% of total short open interest and 8.2% of total spread open interest.
Commercial traders got where they were by liquidating 2,101 long positions and adding 5,455 short positions, leaving them in control of 23.6% of total long open interest and 67.7% of total short open interest.
Corn open interest Tuesday totaled 1.504 million contracts, down from 1.520 million.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $137.90 to $138.78 per cwt, compared with last week’s range of $139.49 to $141.00. FOB dressed steers and heifers went for $215.12 to $215.75 per cwt, versus $216.27 to $218.77.
The USDA choice cutout Monday was up $3.55 per cwt at $287.86, while select was up $3.08 at $277.05. The choice/select spread widened to $10.81 from $10.10 with 85 loads of fabricated product and 22 loads of trimmings and grinds sold into the spot market.
The USDA reported Friday that basis bids for corn from feeders in the Southern Plains were unchanged at $1.45 to $1.65 a bushel over the Mar futures and for southwest Kansas were unchanged at $0.35 over Mar, which settled at $5.86 1/4 a bushel, up $0.08 3/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $161.80 per cwt down $0.21. This compares with Friday’s Jan contract settlement of $162.70 per cwt, down $0.22.