Large commodity index funds, known as managed money, extended their live cattle futures selling spree to 16 weeks in the week ended last Tuesday, Dec. 26, according to data from the Commodity Futures Trading Commission.
The CFTC’s weekly Commitments of Traders report Friday also reported that cattle hedgers reduced their total live cattle net short position for the eighth straight week.
FUNDS CUT LONG LIVE CATTLE POSITION
Last Tuesday, managed money had a collective net long live cattle position of 16,872 contracts, down 165, or 0.97%, from 17,037 a week earlier. It was their smallest position in more than two years and down 86,891, or 83.7%, from the latest high of 103,763 on Sep. 26.
Cattle hedgers, or commercial traders, last Tuesday had a total net short position of 83,197 contracts, down 414, or 0.50%, from 83,611 a week earlier. It was their smallest net short position since July 12, 2022, when it was 81,953 contracts.
The CFTC said managed money arrived at their new cattle position by adding 771 long positions and 936 short positions while unwinding 1,141 spread positions. This left them in control of 15.2% of total long open interest, 8.9% of total short open interest and 16.7% of total spread open interest.
Commercial traders got to where they were by adding 822 long positions and 408 short positions, leaving them with 18.3% of total long open interest and 49.6% of total short open interest.
The CME Group said live cattle open interest last Tuesday came to 265,180 contracts, up from 265,135 a week earlier.
CME data also showed that the most-active Feb contract rose in value during the CFRC-reporting week, settling at $170.40 per cwt, versus $168.77 a week earlier.
FUNDS TRIM NET SHORT CORN STANCE
Meanwhile, managed money last Tuesday had a collective net short Chicago corn position of 172,015 contracts, down 10,343, or 5.67%, from 182,358 a week earlier.
Commercials last Tuesday had a total net short corn position of 29,596 contracts, down 2,094, or 6.61%, from 31,690 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 4,174 long positions, covering 6,169 short positions and putting on 16,194 spread positions. This left them with 13.5% of total long open interest, 27.0% of total short open interest and 13.9% of total spread open interest.
Commercials got to where they were by adding 4,913 long positions and 2,819 short positions, leaving them in charge of 30.0% of total long open interest and 32.3% of total short open interest.
The CME said total open interest Tuesday was 1.277 million contracts, up from 1.257 million.
The most-active Mar contract settle at $4.80 ¼ a bushel, versus $$4.72 ¾ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $171.19 per cwt to $174.19, compared with the previous week’s range of $163.80 to $171.51 per cwt. FOB dressed steers, and heifers went for $267.22 per cwt to $271.38, compared with $266.16 to $271.15.
The USDA choice cutout Friday was down $1.57 per cwt at $289.71 while select was up $1.09 at $260.33. The choice/select spread narrowed to $29.38 from $32.04 with 77 loads of fabricated product and 17 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were down $0.03 at $1.25 to $1.35 a bushel over the Mar corn contract, which settled at $4.71 1/4 a bushel, down $0.03.
No delivery intentions were posted for Dec live cattle Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $215.98 per cwt, down $1.79. This compares with Friday’s Jan contract settlement of $222.30, down $0.17.