Large commodity index funds, or managed money, negated part of their net long live cattle futures position in the week ended Tuesday as cattle owners covered a portion of their total net short position.
The Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday provided the details.
FUNDS ADD SHORT POSITIONS
Tuesday, managed money had a collective net long live cattle position of 117,617 contracts, down 21,509. Or 15.5%, from 139,126 a week earlier.
At the same time, cattle owners, referred to as commercial traders, had a total net short futures position of 138,791 contracts, down 10,871, or 7.26%, from 149,662 a week earlier.
Total live cattle open interest Tuesday was 357,846 contracts, down 48,068, or 11.8%, from 405,914 a week earlier.
The CFTC said managed money on Tuesday held 40,038 long live cattle positions, or 15.2% of total open interest, a decline of 319 from a week earlier. They also held 86,404 short positions, or 32.8% of the total, an increase of 4,086, and 40,031 spread positions, or 15.2% of total open interest, a decline of 9,087.
Commercials Tuesday had 40,781 long positions, or 15.5% of total open interest, for a decline of 2,908 from a week earlier. They also held 72,592 short positions, or 27.6% of the total for a decline of 8,122.
CME Group data showed that the most-active Jun futures contract settled Tuesday at $193.62 per cwt, down $11.80, or 5.74%, from $205.42 a week earlier.
FUNDS EXPAND LONG CORN POSITION
Meanwhile, managed money had a collective net long corn position of 131,184 contracts, up 2,751, or 2.14%, from 128,433 a week earlier.
And commercial traders Tuesday had a total net short position of 395,228 contracts, up 4,920, or 1.26%, from 390,308 a week earlier.
Total corn open interest Tuesday was 1.810 million contracts, down 69,856, or 37.2%, from 1.880 million a week earlier.
The CFTC said managed money Tuesday held 290,992 long corn positions, or 16.1% of total open interest, a gain of 5,914 contracts. They also held 159,808 short positions, or 8.8% of the total, a gain of 3,163 from a week earlier. Further, they held 270,917 spread positions, or 15.0% of open interest, a decline of 57,126 from a week earlier.
Commercials Tuesday held 456,137 long corn positions, or 25.2% of total open interest, a gain of eight contracts. They also held 851,365 short positions, or 47.0% of total open interest, a gain of 4,928 from a week earlier.
The most-active Jul contract settled Tuesday at $4.74 ¾ a bushel, up $0.06 ½, or 1.39%, from $4.68 ¼ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $208.00 per cwt to $213.76, compared with the previous week’s range of $210.15 to $214.47 per cwt. FOB dressed steers, and heifers went for $328.43 per cwt to $333.61, compared with $329.75 to $339.08.
The USDA choice cutout Friday was down $0.07 per cwt at $334.22 while select was off $1.00 at $313.96. The choice/select spread widened to $20.26 from $19.33 with 76 loads of fabricated product and 27 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $380.63 per cwt, and 50% beef was $112.41.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.20 to $1.32 a bushel over the May corn contract, which settled at $4.90 ¼, up $0.07 1/4.
No live cattle were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $286.13 per cwt, down $1.16. This compares with Friday’s Apr contract settlement of $285.17, down $2.40.