Managed money cut its net long cattle positions and now has the lowest net long position in five weeks as nearby futures peaked and then fell away.
The Commodity Futures Trading Commission’s Commitments of Traders report for the week ended June 16 showed that Managed Money cut its net long cattle position to 87,966 contracts from 92,454 the previous week, a dip of 4,488, or 4.85%. This leaves these large speculative funds at their lowest net long position since the week ended May 12 when it was 69,429.
During the latest reporting week, commercial traders, those who handle the cattle at some point in their lives, reduced their net short position 6,582 contracts, or 4.69%, to 133,710 from 140,292. This leaves them with their smallest net short position since the week ended May 5 when it was 131,277 contracts.
The CFTC reported that managed money arrived at its new position by cutting 4,570 long positions and 82 short positions, while liquidating 198 spread positions. This left them controlling 35.7% of total long open interest and 5.3% of total short open interest.
Commercials arrived at their new position by buying 111 new long positions and covering 6,471 short positions. This left them representing 8.2% of total long positions and 54.5% of total short positions.
During the latest reporting week, the most-active Aug contract shot up to a high of $156.47 per cwt on June 10 from a low of $153.20 on June 9 before faltering on Thursday and then dropping to a low of $151.55 on June 16. Since then, the contract has struggled and worked even lower.
MANAGED MONEY GOES SHORT CORN
Managed money increased its net short position in corn to 151,267 contracts during the latest CFTC week from 112,254, a jump of 39,013 contracts, or 34.8%.
Commercials, on the other hand, cut their net short position 26,973 contracts, or 19.9%, to 108,564 contracts from 135,537 the previous week.
Broken down, the CFTC said managed money arrived at its new net short position by selling 6,896 long positions and 32,117 new short positions while adding 3,825 spread positions. This left them representing 15.1% of total long positions and 25.4% of total short positions.
Total open interest during the week declined 2,082 contracts, or 0.14%, to 1,456 million from 1.458 million.
Commercials came to their new net short position by buying 11,835 long positions and covering 15,138 short positions, leaving them in control of 23.6% of total long positions and 31.0% of total short positions.
During the latest reporting week, the most-active Jul corn contract moved significantly lower after making a nearby peak the previous Tuesday at $3.67 ½ a bushel. The contract hit a bottom for the week at $3.47 ¼ on Monday, June 15, before rising again on Tuesday to fill a chart gap.
Since then, the contract had an impressive rally day on Wednesday after gapping sharply lower on the open.
CASH CATTLE SHARPLY LOWER
Cash cattle traded sharply lower last week at $148 to $150 per cwt on a live basis, down $4 5o $5 from the previous week, and at $238 to $242 on a dressed basis, down $2 to $4.
Wholesale beef prices were up again on Friday, with the USDA reporting its choice cutout value at $251.32 per cwt, up $0.49, and its select cutout at $246.23, up $1.50. Volume was light with only 71 loads of fabricated product moving into the spot market.
For the week, the choice cutout was up $5.60, or 2.28%, from $245.72. The select cutout rose $5.81, or 2.42%, from $240.42.
The CME Feeder Cattle Index for the seven days ended Thursday was $225.64 per cwt, down $0.09, compared with Friday’s Aug settlement of $223.42.