Large commodity investment firms, known as managed money, reduced their collective net long live cattle position during the week ended Tuesday as cattle owners, called commercial traders, cut their total net short position.
All that was from Friday’s weekly Commitments of Traders report from the Commodity Futures Trading Commission.
FUNDS SELL CATTLE
The report said managed money Tuesday had a net long cattle position of 84,621 contracts, down 7,182, or 7.82%, from a two-year high of 91,803 a week earlier. The move ended an eight-week run of larger net long positions.
Also on Tuesday, commercial traders had a total net short position of 112,156 contracts, down 7,112, or 5.96%, from 119,268 a week earlier, ending a three-week run of larger net short positions.
The CFTC said managed money arrived at their new net long cattle position by liquidating 5,413 long positions, adding 1,769 short positions and unwinding 6,425 spread positions. This left them in control of 35.0% of total long open interest, 8.2% of total short open interest and 15.4% of total spread open interest.
Friday’s report also said commercials got to where they were Tuesday by adding 3,873 long positions and covering 3,239 short positions, leaving them with 12.2% of total long open interest and 47.8% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 315,802 contracts, down 6,538, or 2.03%, from 322,340 a week earlier.
CME data also showed that the most-active Apr futures contract declined in value during the CFTC reporting week to settle Tuesday at $160.10 per cwt, compared with $161.65.
FUNDS BUY CORN
At the same time, managed money added to their collective net long corn position, going to 198,865 contracts, up 49,200, or 32.9%, from 149,665 a week earlier.
Commercial traders, Tuesday, had a total net short position of 198,865 contracts, up 49,200, or 32.9%, from 149,665 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 46,434 long positions, covering 2,766 short positions and unwinding 5,798 spread positions. This left them with 20.8% of total long open interest, 4.9% of total short open interest and 8.7% of total spread open interest.
Commercials got to where they were Tuesday by adding 1,274 long positions and 31,379 short positions, leaving them holding 24.5% of total long open interest and 58.7% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.251 million contracts, up 36,216, or 2.98%, from 1.215 million a week earlier.
CME data also showed that the most-active Mar contract rose in value during the week to settle Tuesday at $6.85 ¼ a bushel, versus $6.55.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $156.00 to $158.90 per cwt, compared with the previous week’s range of $156.92 to $158.85. FOB dressed steers, and heifers went for $245.49 to $251.06 per cwt, versus $246.75 to $251.19.
The USDA choice cutout Friday was up $0.21 per cwt at $271.72 while select was up $0.74 at $256.43. The choice/select spread narrowed to $15.29 from $15.82 with 96 loads of fabricated product and 33 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were down $0.10 at $1.85 to $2.00 a bushel over the Mar corn contract. Bids in Kansas were steady at $0.85 over the Mar, which settled at $6.76 1/4 a bushel, down $0.01.
The CME Feeder Cattle Index for the seven days ended Thursday was $177.03 per cwt down $0.84. This compares with Friday’s Jan contract settlement of $177.92 per cwt, down $0.17.