Managed Money Raises Long Cattle Posision

Large commodity index funds, called managed money, increased their collective net long live cattle futures position in the week ended Tuesday, as hedgers cut their total net short position.

The data was from the weekly Commitments of Traders report Friday, issued by the Commodity Futures Trading Commission.

 

MANAGED MONEY BUYS CATTLE

 

As of Tuesday, managed money’s collective net long cattle position stood at 37,428 contracts, up 793, or 2.16%, from 36,635 a week earlier.  It was the first week of gains following four weeks of liquidation.

Hedgers, also known as commercial traders, cut their total net short position to 112,879 contracts Tuesday, down 1,485, or 1.30%, from 114,364 a week earlier.  It was their smallest short position in more than a year.

The CFTC said managed money arrived at their new long cattle position by liquidating 383 long positions, covering 1,176 short positions and unwinding 8,637 spread positions.  This left them holding 24.8% of total long open interest and 12.8% of total short open interest and 8.8% of total spread open interest.

Commercials got to where they were by liquidating 1,765 long positions and covering 3,250 short positions, leaving them with 16.1% of total long open interest and 52.2% of total short open interest.

The CME Group said total live cattle open interest Tuesday stood at 312,738 contracts, down 15,535, or 4.73%, from 328,273 a week earlier.

CME data also showed that the most-active Jun cattle contract rose during the week to settle Tuesday at $136.80 per cwt, compared with $135.45 a week earlier.

 

FUNDS ALSO BUY CORN

 

In addition to cattle, managed money also took on a larger net long Chicago corn position in the week ended Tuesday, ending with 361,250 contracts, up 5,426, or 1.52%, from 355,824 a week earlier.

Commercial traders had a collective net short position of 759,613 contracts Tuesday, down 7,042, or 0.92%, from 766,655 a week earlier.

The CFTC said managed money arrived at their new net long position by adding 6,044 long positions, 618 short positions and unwinding 725 spread positions.  This left them with 25.0% of total long open interest, 1.0% of total short open interest and 6.0% of total spread open interest.

Commercials got to where they were Tuesday by adding 9,054 long positions and 2,012 short positions, leaving them in charge of 23.1% of total long open interest and 73.6% of total short open interest.

The CME Group said total open interest Tuesday was 1.504 million contracts, up 16,344, or 1.10%, from 1.488 million.

The most-active May contract rose to $7.58 a bushel from $7.53 a week earlier.

 

CATTLE, BEEF RECAP

 

The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $138.08 to $140.00 per cwt, compared with the previous week’s range of $140.92 to $145.00.  FOB dressed steers and heifers went for $216.09 to $220.18 per cwt, versus $221.90 to $225.95.

The USDA choice cutout Friday was up $1.11 per cwt at $258.16, while select was down $0.03 at $250.65.  The choice/select spread widened to $7.51 from $6.37 with 78 loads of fabricated product and 17 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 $1.30 to $1.40 a bushel over the May futures and for southwest Kansas were steady at $0.00 over May, which settled at $7.41 3/4, down $0.12 3/4.

The CME Feeder Cattle Index for the seven days ended Wednesday was $154.23 per cwt up $1.09.  This compares with Thursday’s Mar contract settlement of $156.55 per cwt, down $0.70.