As of Tuesday, large commodity index funds, called managed money, had extended their collective net long live cattle futures position for the fourth straight week, while hedgers built their total net short position.
That conclusion came from position data released by the Commodity Futures Trading Commission Friday in its weekly Commitments of Traders report.
FUNDS BUY MORE CATTLE
Tuesday, managed money had a collective net long live cattle position of 104,454 contracts, up 3,024, or 2.98%, from 101,430 a week earlier. It was their largest net long position since March 7 when it was 111,453 contracts.
Hedgers, often called commercial traders since they own cattle and theoretically could make or take delivery of a futures contract, had a total net short position Tuesday of 141,225 contracts, up 1,537, or 1.10%, from 139,688 a week earlier. It was their largest net short position since March 7 when it was 147,173 contracts.
The CFTC said managed money reached their new cattle position by adding 1,602 long positions, covering 1,422 short positions and putting on 2,683 spread positions. This left them in charge of 35.5% of total long open interest, 5.6% of total short open interest and 15.8% of total spread open interest.
Commercials got to where they were Tuesday by liquidating 2,580 long positions and covering 1,043 short positions to leave them with 9.2% of total long open interest and 49.6% of total short open interest.
The CME Group said long open interest Tuesday totaled 349,485 contracts, up 8,895, or 2.61%, from 340,590 a week earlier.
CME data also showed that the most-active Jun contract declined in value during the CFTC-reporting week, settling Tuesday at $164,02 per cwt, versus $165,20 a week earlier.
FUNDS GO NET SHORT CORN
Meanwhile, managed money sold Chicago corn futures during the CFTC week, ending with a collective net short position Tuesday of 10,059 contracts, compared with a net long positions of 57,699 contracts a week earlier.
Commercials slashed their total net short corn position to 201,584 contracts, down 69,217, or 25.6%, from 270,801 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 34,624 long positions, adding 33,134 short positions and unwinding 2,648 spread positions. This left them holding 15.3% of total long open interest, 16.1% of total short open interest and 8.6% of total spread open interest.
Commercials got to where they were Tuesday by adding 7,977 long positions and covering 61,240 short positions, leaving them with 29.7% of total long open interest and 45.9% of total short open interest.
Corn open interest Tuesday was 1.243 million contracts, down from 1.318 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 $174.50 per cwt to $182.37, compared with the previous week’s range of $174.86 to $184.47 per cwt. FOB dressed steers, and heifers went for $274.41 per cwt to $284.12, compared with $269.25 to $292.35.
The USDA choice cutout Friday was up $0.37 per cwt at $311.44 while select was down $0.75 at $288.34. The choice/select spread widened to $23.10 from $21.97 with 63 loads of fabricated product and 23 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 $1.55 to $1.65 a bushel over the Jul corn contract, which settled at $5.85 a bushel, up $0.03 1/2.
Seventy-eight steer contracts were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $203.20 per cwt, up $0.05. This compares with Friday’s May contract settlement of $210.97 per cwt, down $0.55.