Large commodity index funds, known as managed money, reduced their collective net long live cattle position in the week ended last Tuesday, Aug. 20.
At the same time, hedgers trimmed their total net short position, according to data from the weekly Commitments of Traders report by the Commodity Futures Trading Commission Friday.
MANAGED MONEY SELLS CATTLE
Last Tuesday, managed money had a collective net long live cattle futures position of 45,265 contracts, down 2,807, or 5.84%, from 48,072 a week earlier. It was their smallest net long position since May 14 when it was 41,720 contracts.
At the same time, hedgers, commonly referred to as commercial traders, had a total net short cattle position of 82,690 contracts, down 207, or 0.25%, from 82,897 a week earlier. It was their smallest net short position since Jan. 23 when it was 74,636 contracts.
The CFTC said managed money arrived at their new live cattle position by liquidating 1,890 long positions, adding 923 short positions and putting on 1,014 spread positions. This left them with 22.6% of total long open interest, 6.8% of total short open interest and 15.9% of total spread open interest.
Commercial traders got to where they were last Tuesday by adding 234 long positions and 27 short positions, leaving them in possession of 13.9% of total long open interest and 42.8% of total short open interest.
CFTC data also showed that total live cattle open interest last Tuesday was 286,291 contracts, up 28, or 0.01%, from 286,263 a week earlier.
The most-active Oct live cattle contract ended last Tuesday at $175.60 per cwt, compared with $180.75 a week earlier.
FUNDS ADD TO NET SHORT CORN POSITION
Managed money last Tuesday had a collective net short corn position of 257,259 contracts, up 4,212, or 1.66%, from 253,047 a week earlier.
Commercials last Tuesday had a total net short corn position of 19,445 contracts, down 7,174, or 27.0%, from 26,619 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 6,122 long positions, covering 1,910 short positions and unwinding 1,212 spread positions. This left them holding 11.4% of total long open interest, 28.0% of total short open interest and 13.8% of total spread open interest.
Commercials got to where they were by liquidating 13,710 long positions and covering 20,884 short positions, leaving them with 27.4% of total long open interest and 28.6% of total short open interest.
Corn open interest last Tuesday was 1.552 million contracts, versus 1.579 million a week earlier.
Most-active Dec settled at $3.98 a bushel, versus $3.97 ¼.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $184.30 per cwt to $184.73, compared with last week’s range of $185.00 to $196.79 per cwt. FOB dressed steers, and heifers went for $290.68 per cwt to $293.51, compared with $292.43 to $300.38.
The USDA choice cutout Monday was down $1.44 per cwt at $315.90 while select was down $0.27 at $300.19. The choice/select spread narrowed to $15.71 from $16.88 with 94 loads of fabricated product and 20 loads of trimmings and grinds sold into the spot market.
The weighted average USDA listed wholesale price for fresh 90% lean beef was $375.62 per cwt, and 50% beef was $147.60.
The USDA said basis bids for corn from feeders in the Southern Plains were down $0.02 at $1.48 to $1.58 a bushel over the Sep corn contract, which settled at $3.62 a bushel, down $0.05 3/4.
No live cattle contracts were tendered for delivery Monday.
The CME Feeder Cattle Index for the seven days ended Friday was $242.83 per cwt, up $1.13. This compares with Monday’s Aug contract settlement of $244.50, up $1.92, and the Sep settlement of $241.35, up $2.77.