In the week ended Tuesday, large commodity investment firms, known as managed money, extended their move toward a lower net long live cattle futures position while cattle owners took on a smaller net short position.
The data came from Friday’s weekly Commitments of Traders report from the Commodity Futures Trading Commission.
MANAGED MONEY TRIMS NET LONG POSITION
As of Tuesday, managed money had a collective net long live cattle futures position of 107,152 contracts, down 4,249, or 3.81%, from 111,401 a week earlier. It was their second straight week of declines.
Cattle owners, often called commercial traders since they deal with futures from a more fundamental perspective, had a total net short position Tuesday of 141,726 contracts, down 1,826, or 1.27%, from 143,552 a week earlier. It also was their second straight week of position declines.
The CFTC said managed money arrived at their new position by liquidating 4,035 long positions, adding 214, short positions and putting on 54 new spread positions. This left them in control of 35.3% of total long open interest, 3.5% of total short open interest and 15.3% of total spread open interest.
Commercial traders got to where they were Tuesday by liquidating 264 long positions and covering 2,090 short positions, leaving then with 10.7% of total long open interest and 52.7% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 335,679 contracts, down 4,628, or 1.36%, from 340,307 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 $172.50 per cwt, compared with $169.70 a week earlier.
FUNDS NUDGE CORN POSITION
As of Tuesday, managed money had a collective net long Chicago corn position of 66,761 contracts, up 700, or 1.06%, from 66,061 a week earlier. It was their third week of being net long after about two months of being net short.
Commercials, Tuesday, had a total net short corn position of 280,123 contracts, down 16,769, or 5.65%, from 296,892 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 32,253 long positions, covering 33,253 short positions and putting on 13,533 spread positions. This left them with 15.1% of total long open interest, 9.8% of total short open interest and 11.9% of total spread open interest.
Commercials got to where they were by adding 5,098 long positions and covering 1,671 short positions, leaving them with 28.4% of total long open interest and 50.9% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.282 million contracts, down 4,059, or 0.32%, from 1.286 million a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $179.83 per cwt to $186.11, compared with the previous week’s range of $182.00 to $191.00 per cwt. FOB dressed steers, and heifers went for $284.16 per cwt to $289.29, compared with $286.23 to $295.18.
The USDA choice cutout Friday was down $0.33 per cwt at $327.72 while select was off $3.55 at $293.63. The choice/select spread widened to $34.09 from $30.87 with 78 loads of fabricated product and 20 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 $1.30 to $1.50 a bushel over the Jul corn contract, which settled at $5.54 1/2 a bushel, down $0.26 1/2.
No deliveries were tendered against Jun live cattle Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $232.75 per cwt, up $1.78. This compares with Friday’s Aug contract settlement of $247.57 per cwt, up $5.20.