Large commodity index funds, called managed money, increased their collective net long live cattle futures position during the trading week ended Tuesday, while cattle owners expanded their total net short position.
The data came from the Commodity Futures Trading Commission in its weekly Commitments of Traders report. Tuesday’s data was compared with the previous Monday’s data because Tuesday, July 4, was a holiday.
FUNDS GROW LONG CATTLE POSITION
As of Tuesday, managed money had a collective net long live cattle position of 117,145 contracts, up 4,988, or 4.45%, from 112,157 the previous Monday, the largest position since June 13 when it was 120,400 contracts.
Cattle owners, often called commercial traders who theoretically could make or take delivery of a futures contract, had a total net short position of 143,074 contracts, up 1,308, or 0.92%, from 141,766 the previous Monday. It was their largest net short position since June 20 when it was 143,552 contracts.
The CFTC said managed money arrived at their new live cattle position by adding 4,637 long positions, covering 351 short positions and unwinding 2,191 spread positions. This left them holding 36.5% of total long open interest, 2.9% of total short open interest and 14.2% of total spread open interest.
Commercial traders got to where they were Tuesday by adding 1,592 long positions and 2,900 short positions, leaving them with 11.9% of total long open interest and 52.9% of total short open interest.
The CME Group said total live cattle open interest Tuesday was 347,091 contracts. up 1,408, or 0.41%, from 345,683 the previous Monday.
The most-active Oct contract moved higher during the CFTC reporting period, settling Tuesday at $181.72 per cwt, compared with $179.32 the previous Monday.
FUNDS SELL CORN
CFTC data showed that managed money Tuesday had a collective net short Chicago corn position of 56,167 contracts, up 48,808, or 663.2%, from 7,359 the previous Monday.
At the same time, commercial traders Tuesday had a total net short position of 166,770 contracts, down 43,755, or 20.8%, from 210,525 the previous Monday.
The CFTC said managed money arrived at their new corn position by liquidating 7,739 long positions, adding 41,069 short positions and putting on 5,045 spread positions. This left them in charge of 12.4% of total long open interest, 16.9% of total short open interest and 13.4% of total spread open interest.
Commercials got to where they were Tuesday by adding 458 long positions and covering 43,297 long positions, leaving them with 29.7% of total long open interest and 43.2% of total short open interest.
The CME Group said total corn open interest Tuesday was 1.252 million contracts, up 4,860, or 0.39%, from 1.247 million the previous Monday.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $178.00 per cwt to $186.59, compared with the previous week’s range of $177.10 to $190.00 per cwt. FOB dressed steers, and heifers went for $280.56 per cwt to $286.96, compared with $280.53 to $289.54.
The USDA choice cutout Friday was down $0.97 per cwt at $305.94 while select was off $3.57 at $276.61. The choice/select spread widened to $29.33 from $26.73 with 95 loads of fabricated product and 41 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.75 to $1.95 a bushel over the Sep corn contract, which settled at $5.06 1/2 a bushel, up $0.13.
The CME Feeder Cattle Index for the seven days ended Thursday was $239.45 per cwt, down $0.24. This compares with Friday’s Aug contract settlement of $246.65 per cwt, up $1.65.