As of Tuesday, large commodity index funds, known as managed money, had a slightly larger collective net long live cattle futures position than they had a week earlier.
Commercial traders, those who own, or will own, the cattle and approach the market mostly as for hedging, had a slightly larger collective net short position Tuesday than they had a week earlier.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
FUNDS CAUTIOUSLY BULLISH
As of Tuesday, managed money had a collective net long cattle position of 58,212 contracts, up 204, or 0.35%, from 58,008 a week earlier.
At the same time, commercial traders had a total net short position of 140,729 contracts, up 2,716, or 1.97%, from 138,013 a week earlier.
The CFTC said managed money arrived at their new live cattle position by adding 755 long positions, 551 short positions and 1,850 spread positions. This left them in charge of 25.6% of total long open interest, 7.9% of total short open interest and 13.2% of total spread open interest.
Commercials got to their new position by adding 2,042 long positions and 4,758 short positions, leaving them with 11.3% of total long open interest and 54.1% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 328,652 contracts, up 5,990, or 1.86%, from 322,662 a week earlier.
CME Group data also showed that the most-active Apr live cattle contract rose during the CFTC reporting week to settle Tuesday at $141.85 per cwt, compared with $141.20.
FUNDS SELL CORN AGAIN
During the same week, managed money cut their collective net long Chicago corn position for the third straight week to 318,944 contracts, down 15,832, or 4.73%, from 334,776 a week earlier to their lowest point since Nov. 30 when it was 303,534 contracts.
Commercials reduced their total net short corn position to 644,694 contracts from 663,283 a week earlier, a decline of 18,589, or 2.80%. It was their smallest net short position since Dec. 7 when it was short by 641,126 contracts.
The CFTC said managed money arrived at their new corn position by liquidating 13,829 long positions, adding 2,003 short positions and unwinding 5,376 spread positions. This left them with 23.6% of total long open interest, 2.2% of total short open interest and 7.9% of total spread open interest.
Commercials got to where they were by liquidating 1,349 long positions and covering 19,938 short positions, leaving them in charge of 23.8% of total long open interest and 67.1% of total short open interest.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $137.18 to $141.00 per cwt, compared with the previous week’s range of $139.49 to $141.00. FOB dressed steers and heifers went for $212.87 to $216.93 per cwt, versus $216.27 to $218.77.
The USDA choice cutout Friday was down $0.57 per cwt at $292.41, while select was up $0.15 at $282.33. The choice/select spread narrowed to $10.08 from $10.80 with 54 loads of fabricated product and 29 loads of trimmings and grinds sold into the spot market.
The USDA reported that basis bids for corn from feeders in the Southern Plains were unchanged at $1.45 to $1.65 a bushel over the Mar futures and for southwest Kansas were unchanged at $0.35 over Mar, which settled at $6.16 ¼ a bushel, up $0.05 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $161.10 per cwt down $0.10. This compares with Friday’s Jan contract settlement of $160.27 per cwt, down $0.90.