Contributing to a rally in live cattle futures, large commodity index funds, known as managed money, extended to extend their net long position, according to data from the Commodity Futures Trading Commission.
In its weekly Commitments of Traders report Friday, the CFTC also showed that commercial traders, those who own, or will own, the cattle represented by the futures contract, advanced their total net short position.
FUNDS BUILD NET LONG POSITION
As of Tuesday, the day marking the week-long data series for the Commitments report, managed money had a collective net long live cattle position of 122,493 contracts, up 7,140, or 6.19%, from 115,353 a week earlier.
At the same time, commercials had a total net short position of 133,196 contracts, up 4,625, or 3.60%, from 128,571 a week earlier.
Managed money Tuesday held 138,877 long live cattle positions, or 38.9% of total open interest, a gain of 10,525 from a week earlier. They also had 16,384 short positions, or 4.6% of the total, a gain of 3,385; and they had 41,473 spread positions, or 11.6% of total open interest, a gain of 1,346.
Commercials Tuesday held 46,646 long live cattle positions, or 13.1% of total open interest, a decline or 2,775 from a week earlier. They also had 179,842 short positions, or 50.4% of total open interest, a gain of 1,850.
Total live cattle open interest Tuesday was 357,066 contracts, up 15,943, or 4.67%, from 341,123 a week earlier.
The most-active Jun live cattle contract rose in value during the CFTC-reporting week to settle at $210.20 per cwt, a gain of $3.93, or 1.91%, from $206.27 a week earlier.
FUNDS LIQUIDATE CORN POSITIONS
Tuesday, managed money had a net long corn position of 86,129 contracts, down 46,285, or 35.0%. from 132,414 a week earlier.
Meanwhile, commercials had a total net short corn position of 388,185 contracts, down 33,427, or 7.93%, from 421,612 a week earlier.
Managed money Tuesday held 262,858 long corn positions, or 17.0% of total open interest, a decline of 26,985 from a week earlier. They also had 176,729 short positions, or 11.4% of total open interest, a gain of 19,300, while holding another 186,970 spread positions, or 12.1% of total open interest, a decline of 23,441.
Commercials Tuesday held 345,202 long positions, or 22.4% of total open interest, a decline of 79,150 contracts from a week earlier, a decline of 79,150; they also held 733,387 short positions, or 47.5% of total open interest, a decline of 112,577.
Total open interest was 1.544 million contracts, down from 1.708 million a week earlier.
Most-active Jul settled at $4.70 ¼ a bushel, down from $4.83 ¼.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $212.00 per cwt to $219.77, compared with the previous week’s range of $207.38 to $214.72 per cwt. FOB dressed steers, and heifers went for $329.37 per cwt to $346.08, compared with $321.91 to $336.58.
The USDA choice cutout Friday was down $0.27 per cwt at $342.90 while select was up $1.07 at $325.35. The choice/select spread narrowed to $17.55 from $18.89 with 80 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $375.64 per cwt, and 50% beef was $106.37.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.18 to $1.30 a bushel over the May corn contract, which settled at $4.61 1/4, down $0.03.
The CME Feeder Cattle Index for the seven days ended Thursday was $296.38 per cwt, up $0.28. This compares with Friday’s May contract settlement of $294.50, up $1.72.