Large commodity index funds, better known as managed money, decreased their collective net long live cattle futures position in the week ended Tuesday as hedgers trimmed their total net short position.
The data came from Friday’s weekly Commitments of Traders report from the Commodity Futures Trading Commission.
MANAGED MONEY CUTS LONG POSITION
As of Tuesday, managed money had a collective net long cattle position of 56,642 contracts, down 5,120, or 8.29%, from 61,762 a week earlier.
At the same time, hedgers, or commercial traders, since they deal with the actual cattle that the futures contract represents, had a total net short position of 93,059 contracts, down 4,792, or 4.90%, from 97,851 a week earlier.
The CFTC said managed money arrived at their new cattle position by liquidating 3,269 long positions, adding 1,851 short positions and unwinding 2,194 spread positions. This left them in control of 27.0% of total long open interest, 7.4% of total short open interest and 12.8% of total spread open interest.
Commercial traders got to where they were by adding 2,371 long positions and covering 2,421 short positions, leaving them with 14.8% of total long open interest and 47.1% of total short open interest.
The CFTC also said total live cattle open interest Tuesday was 288,856 contracts, down 3,659, or 1.25%, from 292,515 a week earlier.
CME Group data showed the most-active Aug live cattle contract declined in value during the CFTC-reporting week, settling Tuesday at $178.45 per cwt, compared with $181.82 a week earlier.
FUNDS GO SHORT
Tuesday, managed money had a collective net short Chicago corn position of 219,608 contracts, up 87,788, or 66.6%, from 131,820 a week earlier. It was their largest net short position since April 23 when it was 225,943 contracts.
Commercials, Tuesday, had a total net short corn position of 78,509 contracts, down from 144,094 a week earlier. It was their smallest net short position since April 30 when it was 72,347 contracts.
The CFTC said managed money arrived at their new corn position by liquidating 13,886 long positions, adding 73,902 short positions and putting on 39,747 spread positions. This left them with 12.2% of total long open interest, 25.6% of total short open interest and 16.2% of total spread open interest.
Commercials got to where they were by adding 41,495 long positions and covering 24,090 short positions, leaving them in possession of 24.5% of total long open interest an d 29.3% of total short open interest.
Total open interest was 1.636 million contracts, up from 1.542 million a week earlier, and the most-active Jul contract declined in value to $4.42 ½ a bushel, compared with $4.62 ½ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $186.00 per cwt to $191.52, compared with the previous week’s range of $186.66 to $192.34 per cwt. FOB dressed steers, and heifers went for $291.58 per cwt to $299.90, compared with $293.35 to $302.05.
The USDA choice cutout Friday was up $0.54 per cwt at $316.75 while select was up $0.31 at $301.14. The choice/select spread widened to $15.61 from $15.38 with 103 loads of fabricated product and 16 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $356.10 per cwt, and 50% beef was $81.58.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.42 to $1.52 a bushel over the Jul corn contract, which settled at $4.48 3/4 a bushel, down $0.03 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $251.20 per cwt, up $0.66. This compares with Friday’s Aug contract settlement of $254.92, up $2.07.