Tuesday, large commodity index funds, known as managed money, had expanded their collective net long live cattle position from a week earlier as hedgers enlarged their total net short position.
The Commodity Futures Trading Commission released the data Friday in its weekly Commitments of Traders report for activity as of the previous Tuesday.
MANAGED MONEY BUYS CATTLE
As of Tuesday, managed money’s collective net long position in live cattle stood at 44,176 contracts, up 7,239, or 19.6%, from 36,937 a week earlier. It was their largest position since March 29 when it was 48,116 contracts.
At the same time, hedgers, more commonly grouped as commercial traders, had a total net short position of 119,958 contracts, up 2,860, or 2.44%, from 117,098 a week earlier. It was their largest net short position since March 1 when it was 132,278 contracts.
The CFTC said managed money arrived at their new live cattle position by adding 2,874 long positions, covering 4,365 short positions and putting on 702 new spread positions. This left them in control of 27.0% of total long open interest, 12.6% of total short open interest and 8.7% of total spread open interest.
Commercial traders got to where they were by liquidating 3,020 long positions and covering 160 short positions, leaving them with 14.1% of total long open interest and 53.3% of total short open interest.
CME Group data showed total live cattle open interest Tuesday of 306,591 contracts, down 1,636, or 0.53%, from 308,227 a week earlier.
The CME Group also said the most-active Jun contract rose slightly during the week to settle Tuesday at $136.57, compared with $136.30.
FUNDS ALSO BUY CORN
In addition to live cattle, managed money also bought corn in the week ended Tuesday, ending with 362,901 contracts, up 6,024, or 1.69%, from 356,877 a week earlier.
Commercials, Tuesday, had a total net short position of 760,107 contracts, up 14,752, or 1.98%, from 745,355 the previous Tuesday.
The CFTC said managed money arrived at their new corn position by adding 9,946 long positions, 3,922 short positions and 3,211 spread positions. This left them holding 23.5% of total long open interest, 1.2% of total short open interest and 5.9% of total spread open interest.
Commercials got to where they were by adding 8,884 long positions and 23,636 short positions, leaving them with 24.1% of total long open interest and 70.8% of total short open interest.
Total open interest was 1.625 million contracts, up from 1.590 million.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $141.47 to $143.77 per cwt, compared with the previous week’s range of $137.84 to $141.52. FOB dressed steers, and heifers went for $217.03 to $221.86 per cwt, versus $216.67 to $220.09.
The USDA choice cutout Friday was down $2.26 per cwt at $267.91, while select was off $0.91 at $254.77. The choice/select spread narrowed to $14.49 from $14.49 with 73 loads of fabricated product and 22 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 $1.50 to $1.60 a bushel over the May futures and for southwest Kansas were unchanged at $0.10 over May, which settled at $7.93 a bushel, down $0.06 1/4.
Twenty-five heifer contracts were tendered for delivery Friday against the Apr contract. Seven heifer contracts were retendered for delivery at one.
The CME Feeder Cattle Index for the seven days ended Thursday was $155.21 per cwt up $1.31. This compares with Friday’s Apr contract settlement $157.95, down $0.50, and May’s $163.87, down $0.97.