Large commodity index funds cut their collective net long live cattle futures position in half in the week ended Tuesday as hedgers covered a large portion of their total net short position, according to data from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS LIQUIDATE LONG CATTLE POSITIONS
The funds, known as managed money, had a collective net long cattle position Tuesday of 9,117 contracts, down 10,653, or 55.7%, from 19,110 a week earlier. It was their smallest net long position in more than two years.
Hedgers, commonly known as commercial traders since they own, or will own, the cattle, Tuesday had a total net short position of 81,491 contracts, down 8,437, or 9.38%, from 89,928 a week earlier. It was their smallest net short position in more than two years.
The CFTC said managed money arrived at their new cattle position by liquidating 2,887 long positions, adding 7,106 short positions and putting on 2,723 spread positions. This left them with 24.4% of total long open interest, 21.1% of total short open interest and 9.8% of total short open interest.
Commercial traders got to where they were Tuesday by adding 2,051 long positions and covering 6,386 short positions, leaving them in charge of 16.0% of total long open interest and 45.1% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 280,113 contracts, down 46, or 0.02%, from 280,159 a week earlier.
The CME said the most-active Aug contract rose in value during the CFTC reporting week to settle Tuesday at $132.92 per cwt, compared with $132.72 a week earlier.
FUNDS LIQUIDATE LONG CORN POSITIONS
Tuesday, managed money had a net long Chicago corn position of 157,976 contracts, down from 211,933 a week earlier. It was their smallest net long position since Oct. 13, 2020, when it totaled 156,928 contracts.
Commercials Tuesday had a total net short corn position of 472,101 contracts, down 65,492, or 12.2%, from 537,593 a week earlier. It was their smallest net short corn position since Oct. 19, 2021, when it was 460,174 contracts.
The CFTC said managed money arrived at their new corn position by liquidating 27,352 long positions, adding 26,605 short positions and putting on 16,906 spread positions. This left them in control of 17.7% of total long open interest, 5.8% of total short open interest and 10.1% of total spread open interest.
Commercials got to where they were Tuesday by adding 22,159 long positions and liquidating 43,333 short positions, leaving them with 24.5% of total long open interest and 60.0% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $138.00 to $148.92 per cwt, compared with the previous week’s range of $138.00 to $151.00. FOB dressed steers, and heifers went for $217.96 to $222.67 per cwt, versus $217.54 to $229.38.
The USDA choice cutout Friday was down $0.18 per cwt at $267.89, while select was down $0.73 at $241.85. The choice/select spread widened to $26.04 from $25.49 with 68 loads of fabricated product and 22 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 $2.65 to $2.85 a bushel over the Sep futures and for southwest Kansas were steady at $0.10 under Sep, which settled at $6.33 1/4, up $0.24 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $168.39 per cwt up $5.39. This compares with Friday’s Aug contract settlement of $171.72, down $0.75.