During the week ended last Tuesday, July 7, large commodity index funds, known as managed money, liquidated some of their collective net long live cattle futures positions.
In publishing those details in Friday’s weekly Commitments of Traders report, the Commodity Futures Trading Commission also showed data that said cash cattle traders, known as commercial traders, had reduced their total net short live cattle positions.
MANAGED MONEY SELLES CATTLE
As of last Tuesday, managed money had a collective net long live cattle futures position of 114,908 contracts, down 4,532, or 3.79%, from 119,440 a week earlier.
At the same time, commercial traders had a total net short live cattle position of 129,405 contracts, down 5,444, or 4.04%, from 134,849 a week earlier.
Broken down, managed money’s collective position held 124,854 long positions, or 39.4% of total open interest, for a decline of 3,759 contracts. It also held 9,946 short positions, or 3.1% of total open interest, for a gain of 773, and it held 42,298 spread positions, or 13.3% of total open interest for a decline of 20 contracts.
Commercial traders’ position held 28,426 long live cattle positions, or 9.0% of total open interest, for a gain of 1,784 contracts. It also held 157,831 short positions, or 49.8% of total open interest, for a decline of 3,660.
At the CME last Tuesday, total live cattle open interest came to 316,893 contracts, down 12,010, or 3.65%, from 328,903 a week earlier.
During the CFTC-reporting week, the Aug live cattle contract declined in value to settle last Tuesday at $238.42 per cwt, compared with $242.43 a week earlier.
MANAGED MONEY BUYS CORN
As of last Tuesday, managed money had a collective net short corn position of 14,999 contracts, down 51,997, or 77.6%, from being short by 66,996 a week earlier.
At the same time, commercial traders had a total net short corn position of 395,078 contracts, up 42,037, or 11.9%, from 353,041 a week earlier.
Broken down, managed money’s new position held 287,447 long positions, or 16.8% of total open interest, for a decline of 5,844 contracts. It also held 302,446 short positions, or 17.7% of total open interest, for a decline of 57,841, and it held 232,157 spread positions, or 13.6% of total open interest, for a decline of 1,245.
Commercials’s position last Tuesday held 339,364 long positions, or 19.8% of total open interest, for a decline of 23,049 contracts, and it held 734,442 short positions, or 42.9% of total open interest, for a gain of 18,988 contracts.
At the CME last Tuesday, total open interest was 1.721 million contracts, down 200, or 10.4%, from 1.921 million a week earlier.
The Dec futures contract rose during the CFTC-reporting week to settle last Tuesday at $4.64 ¼ a bushel, compared with $4.36 a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $248.66 per cwt to $249.22, compared with last week’s range of $254.99 to $258.00 per cwt. FOB dressed steers and heifers went for $398.14 per cwt to $399.16, compared with $400.75 to $407.21.
The USDA choice cutout Monday was down $7.07 per cwt at $375.61 while select was off $3.16 at $365.17. The choice/select spread narrowed to $10.44, from $14.35 with 101 loads of fabricated product and 22 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $457.46 per cwt, and 50% beef was $175.68.
The USDA said basis bids for corn from feeders in the Southern Plains were at $1.20 to $1.40 a bushel over the Sep corn contract, which settled at $4.41 a bushel, up $0.01 1/2.
The CME Feeder Cattle Index for the seven days ended Friday was $372.52 per cwt, up $2.10. This compares with Monday’s Aug contract settlement of $354.35, down $0.25.