Managed money, otherwise known as large commodity index funds, cut their collective net long live cattle position during the week ended Tuesday as futures prices dropped.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday, which also showed that commercial traders, those who, theoretically, could make or take delivery on a futures contract, slashed their total net short position.
FUNDS LESS LONG LIVE CATTLE
Tuesday, managed money had a collective net long live cattle position of 23,427 contracts, down 4,346, or 15.6%, from 27,773 a week earlier. It was their smallest net long position since Oct. 5 when it totaled 21,787 contracts.
At the same time, commercial traders had a total net short position of 101,376 contracts, down 3,770, or 3.59%, from 105,146 a week earlier. It was their largest net short position since Nov. 9, 2020, when it was 98,732 contracts.
The CFTC said managed money arrived at their new cattle position by liquidating 3,121 long positions, adding 1,225 short positions and unwinding 2,231 spread positions. This left them holding 25.1% of total long open interest, 17.3% of total short open interest and 17.3% of total spread open interest.
The CME Group said total live cattle open interest Tuesday was 300,617 contracts, down 8,095, or 2.62%, from 308,712 a week earlier.
CME data also showed that the most-active Aug contract declined in value during the CFTC reporting week to settle at $133.47 per cwt, compared with $134.10 a week earlier. The contract continued to decline for the rest of the week.
FUNDS TRIM LONG CORN POSITION
Managed money Tuesday also had a collective net long Chicago corn position of 312,365 contracts, down 1,026, or 0.33%, from 313,391 a week earlier, taking them to their lowest point since Nov. 30 when it was 303,534 contracts.
Commercials Tuesday had a total net short corn position of 723,898 contracts, up 19,899, or 2.83%, from 703,999 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 9,502 long positions and 10,528 short positions while unwinding 1,475 spread positions. This left them in charge of 23.7% of total long open interest, 3.5% of total short open interest and 7.1% of total spread open interest.
Commercials got to where they were by adding 391 long positions and 20,290 short positions, leaving them with 20.7% of total long open interest and 67.4% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.548 million contracts, up 37,655, or 2.49%, from 1.511 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 $140.00 to $144.52 per cwt, compared with the previous week’s range of $140.00 to $158.23. FOB dressed steers, and heifers went for $219.21 to $225.67 per cwt, versus $220.11 to $225.73.
The USDA choice cutout Friday was up $0.47 per cwt at $262.17, while select was down $3.04 at $243.02. The choice/select spread widened to $19.15 from $15.64 with 57 loads of fabricated product and 32 loads of trimmings and grinds sold into the spot market.
The USDA reported that basis bids for corn from feeders in the Southern Plains were unchanged at $1.55 to $1.65 a bushel over the Jul futures and for southwest Kansas were steady at even the Jul, which settled at $7.78 3/4 a bushel, down $0.04 1/2.
The CME Feeder Cattle Index for the seven days ended Thursday was $153.05 per cwt down $0.41. This compares with Friday’s May contract settlement of $153.40, down $0.72.