During the week ended Tuesday, large commodity index firms, known as managed money, sold down their collective net long live cattle futures position as cash cattle traders covered many of their total net short positions.
That was according to data published by the Commodity Futures Trading Commission in its weekly Commitments of Traders report Friday.
FUNDS LIQUIDATE LIVE CATTLE POSITIONS
Tuesday, managed money had a collective net long live cattle position of 98,135 contracts, down 16,773, or 14.6%, from 114,908 a week earlier and their smallest net long position since Jan. 6 when it was 93,727 contracts.
At the same time, cash cattle traders, known as commercial traders, had a total net short live cattle position of 121,261 contracts, down 8,144, or 6.29%, from 129,405 a week earlier. It was their smallest net short position since June 9 when it was 109,072 contracts.
Broken down, managed money’s position included 109,102 long positions, or 35.0% of total open interest, for a decline of 15,752. It also held 10,967 short positions, or 3.5% of total open interest, for a gain of 1,021, and it held 44,806 spread positions, or 14.4% of total open interest, for a gain of 2,508.
Commercial traders’ position held 36,080 long positions, or 11.6% of total open interest, for a gain of 7,654, and it held 157,341 short positions, or 50.5% of total open interest, for a decline of 490.
At the CME Tuesday, total live cattle open interest was 311,766 contracts, down 5,127, or 1.62%, from 316,893 a week earlier.
The Oct live cattle contract declined in value during the CFTC-reporting week to settle at $227.65 per cwt, compared with $234.02 a week earlier.
FUNDS BUY CORN, GO NET LONG
During the latest CFTC-reporting week, managed money renewed their buying interest with corn and went to a net long position from being net short. Tuesday, they had a collective net long position of 11,361 contracts, versus being net short by 14,999 a week earlier.
At the same time, commercial traders expanded their total net short position to 417,100 contracts, up 22,022, or 5.57%, from 395,078 a week earlier.
Broken down, managed money’s position held 294,328 contracts, or 17.2% of total open interest, for a gain of 6,881 from a week earlier. It also held 282,967 short positions, or 16.6% of total open interest, for a decline of 19,479, and it held 221,360 spread positions, or 13.0% of total open interest, for a decline of 10,797.
Commercials’ position, meanwhile, held 341,967 long positions, or 20.0% of total open interest, for a gain of 2,603, and it held 759,067 short positions, or 44.5% of total open interest, for a gain of 24,625.
At the CME Tuesday, total corn open interest was 1.707 million contracts, down 5,000, or 0.29%, from 1.712 million a week earlier.
The Dec corn contract fell in value during the CFTC-reporting week to settle Tuesday at $4.60 ½ a bushel, compared with $4.64 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 $248.03 per cwt to $256.91, compared with the previous week’s range of $254.99 to $258.00 per cwt. FOB dressed steers and heifers went for $389.00 per cwt to $400.86, compared with $400.75 to $407.21.
The USDA choice cutout Friday was down $1.57 per cwt at $366.81 while select was off $0.40 at $355.29. The choice/select spread narrowed to $11.52, from $12.69 with 72 loads of fabricated product and 39 loads of trimmings and grinds sold into the spot market.
The USDA-listed the weighted average wholesale price for fresh 90% lean beef as $451.392 per cwt, and 50% beef was $158.86.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.20 to $1.40 a bushel over the Sep corn contract, which settled at $4.44 3/4 a bushel, up $0.03 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $364.03 per cwt, down $1.49. This compares with Friday’s Aug contract settlement of $345.95, down $0.65.