Large commodity index funds, known as managed money, reduced their collective net long live cattle futures position during the week ended Tuesday as hedgers trimmed their total short position.
So reported the Commodity Futures Trading Commission in its weekly Commitments of Traders report Friday.
FUNDS SELL CATTLE
Tuesday, managed money had a collective net long live cattle position of 48,078 contracts, down 10,270, or 17.6%. from 58,348 a week earlier. It was their smallest net long position since May 14 when it was 41,720 contracts.
At the same time, hedgers, often called commercial traders since they deal mostly in a cash, or commercial, market, using futures as a hedge against a cash position, held a total net short position of 82,897 contracts, down 9,005, or 9.80%, from 91,902 a week earlier. It was their smallest net short position since Jan. 29 when it was 74,636 contracts.
The CFTC said managed money arrived at their new cattle position by liquidating 9,118 long positions, adding 1,160 short positions and unwinding 1,650 spread positions. This left them with 23.2% of total long open interest, 6.4% of total short open interest and 15.6% of total spread open interest.
Commercials got to where they were Tuesday by adding 7,178 long positions and covering 1,827 short positions, leaving them in control of 13.8% of total long open interest and 42.8% of total short open interest.
The CFTC also said total live cattle open interest Tuesday was 286,263 contracts, down 2,836, or 0.98%, from 289,099 a week earlier.
During the CFTC-reporting week, the most-active Oct live cattle contract rose in value, settling Tuesday at $180.75 per cwt, compared with $179.05 a week earlier.
FUNDS SELL CORN
Tuesday, managed money had a collective net short corn position of 253,047 contracts, up 4,243, or 1.71%, from 248,804 a week earlier.
Meanwhile, commercials had a total net short position of 26,619 contracts, down 16,108, or 37.7%, from 42,727 a week earlier.
The CFTC said managed money Tuesday arrived at collective net short corn position by adding 12,202 long positions, 16,445 short positions and unwinding 11,677 spread positions. This left them with 11.6% of total long open interest and 27.6% of total short open interest and 13.7% of total spread open interest.
Commercials got to where they were by adding 3,303 long positions and covering 12,805 short positions, leaving them, with 27.8% of total long open interest and 29.5% of total short open interest.
The CFTC added that total long open interest was 1.579 million contracts, up from 1.578 million a week earlier.
Most-active Dec settled at $3.97 ¼ a bushel, versus $4.05 ¼.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $186.50 per cwt to $195.43, compared with the previous week’s range of $186.43 to $197.25 per cwt. FOB dressed steers, and heifers went for $294.90 per cwt to $303.69, compared with $295.76 to $308.46.
The USDA choice cutout Friday was up $0.51 per cwt at $317.45 while select was up $0.56 at $302.59. The choice/select spread narrowed to $14.86 from $14.91 with 99 loads of fabricated product and 17 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $375.49 per cwt, and 50% beef was $174.38.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.50 to $1.60 a bushel over the Sep corn contract, which settled at $3.70 1/2 a bushel, down $0.04 1/2.
No live cattle contracts were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $246.71 per cwt, up $0.37. This compares with Friday’s Aug contract settlement of $242.77, down $3.95.