Large commodity index funds, better known as managed money, made a small increase in its collective net long live cattle futures position in the week ended last Tuesday, July 8, according to the weekly Commitments of Traders report Friday from the Commodity Futures Trading Commission.
At the same time, cattle owners, known as commercial traders, decreased their total net short position.
FUNDS NUDGE LONG CATTLE POSITION
As of last Tuesday, managed money had a collective net short live cattle position of 123,764 contracts, up 605, or 0.49%, from 123,159 a week earlier.
Meanwhile, commercial traders had a total net short live cattle position of 126,083 contracts, down 4,626, or 3.53%, from 130,709 a week earlier.
The CFTC said managed money Tuesday held 153,191 long cattle positions, or 39.4% of total open interest for a gain of 2,800 from a week earlier. They also held 29,427 short positions, or 7.6% of total open interest, for a gain of 2,195; they also had 36,930 spread positions, or 9.5% of total open interest, for a decline of 2,262.
Commercials last Tuesday held 61,972 long positions, or 15.9% of total open interest, a gain of 3,265 from a week earlier. They also held 188,055 short positions, or 48.3% of total open interest, a decline of 1,361.
The CFTC reported total open interest at the CME of 389,027 contracts, up 2,462, or 0.64%, from 386,565 a week earlier.
The most-active Oct contract rose during the CFTC-reporting week to settle at $216.82 per cwt, compared with $207.80.
FUNDS COVER SHORT CORN POSITIONS
Last Tuesday, managed money had covered some of their net short corn position with a collective net short position of 179,287 contracts, down 10,253, or 5.41%, from 189,540 a week earlier.
At the same time, commercial traders had a total net short corn position of 61,770 contracts, up 798, or 1.31%, from 60,972 a week earlier.
The CFTC said managed money last Tuesday held 179,925 long positions, or 12.0% of total open interest, a decline of 8,854 contracts. They also held 359,212 short positions, or 24.0% of total open interest, for a decline of 19,107. They also had 201,788 spread positions, or 13.5% of total open interest, for a decline of 939.
Commercials held 407,427 long corn positions, or 27.2% of total open interest, for a gain of 15,560 contracts. They also held 469,197 short positions, or 31.3% of total open interest, for a gain of 16,358.
Open interest at the CME totaled 1.499 million contracts, compared with 1.499 million a week earlier.
Most-active Dec declined in value during the week, settling at $4.14 ¼ a bushel, compared with $4.22.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $229.17 per cwt to $231.73, compared with last week’s range of $224.82 to $233.02 per cwt. FOB dressed steers, and heifers went for $359.83 per cwt to $363.63, compared with $354.61 to $365.41.
The USDA choice cutout Monday was down $1.57 per cwt at $377.07 while select was off $1.91 at $364.58. The choice/select spread widened to $12.49 from $12.15 with 76 loads of fabricated product and 19 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef was $418.79 per cwt, and 50% beef was $263.66.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.30 to $1.45 a bushel over the Sep corn contract, which settled at $4.00, up $0.04.
The CME Feeder Cattle Index for the seven days ended Friday was $319.89 per cwt, down $3.48. This compares with Monday’s Aug contract settlement of $319.47, down $5.85.