Large commodity index funds, known as managed money, continued to sell down their collective net long live cattle position in the week ended Tuesday, just as cash cattle traders covered more of their total net short position.
Those were the conclusions of market analysts from the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday.
FUNDS LIQUIDATE CATTLE POSITIONS
Tuesday, managed money had a collective net long live cattle position of 67,025 contracts, down 8,656, or 11.4%, from 75,681 a week earlier, taking them to their smallest net long cattle position since Sep. 24, 2024, when it was 57,010 contracts.
At the same time, cash cattle traders, or commercial traders, had a total net short live cattle position of 98,985 contracts, down 13,036, or 11.6%, from 112,021 a week earlier, their smallest net short position since Sep. 24, 2024, when it was 86,348 contracts.
Broken down, managed money’s position Tuesday held 84,907 long positions, or 28.4% of total open interest, for a decline of 5,312 contracts. It also held 17,882 short positions, or 6.0% of total open interest, for a gain of 3,344, and it held 46,200 spread positions, or 15.5% of total open interest, for a decline of 214.
Commercial traders’ net short position held 41,461 long positions, or 13.9% of total open interest, for a gain of 4,340 contracts, and it held 140,446 short positions, or 47.1% of total open interest, for a decline of 8,696.
Total live cattle open interest at the CME Tuesday was 298,449 contracts, down 4,640, or 1.53%, from 303,089 a week earlier.
The Oct live cattle contract declined in value during the CFTRC-reporting week to settle Tuesday at $222.17 per cwt, compared with $223.22.
FUNDS TAKE LARGER NET LONG CORN POSITION
Tuesday, managed money had a net long corn futures position of 126,776 contracts, up 70,063, or 123.5%, from 56,713 a week earlier, taking them to their largest net long position since May 26 when it was 211,337 contracts.
Commercials Tuesday had a total net short position of 545,405 contracts, up 66,145, or 13.8%, from 479,260 a week earlier, taking them to their largest net short position since May 26 when it was 578,814 contracts.
Broken down, managed money’s corn position Tuesday held 314,454 long positions, or 18.1% of total open interest, for a gain of 8,698 contracts. It also held 187,678 short positions, or 10.8% of total open interest, for a decline of 61,365, and it held 224,887 spread positions, or 12.9% of total open interest, for a decline of 5,286.
Commercials, meanwhile, held 320,246 long positions, or 18.4% of total open interest, for a decline of 14,882, and they held 865,651 short positions, or 49.8% of total open interest, for a gain of 51,263.
Total corn open interest at the CME Tuesday was 1.737 million contracts, down 5,000, or 0.29%, from 1.742 million a week earlier.
The Dec corn contract rose in value during the CFTC-reporting week, settling Tuesday at $4.80 ½ a bushel, compared with $4.75 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 $230.70 per cwt to $237.92, compared with the previous week’s range of $238.00 to $252.00 per cwt. FOB dressed steers and heifers went for $361.74 per cwt to $377.75, compared with $373.89 to $388.86.
The USDA choice cutout Friday was up $0.88 per cwt at $361.38 while select was up $4.90 at $346.23. The choice/select spread narrowed to $15.15, from $19.17 with 53 loads of fabricated product and 28 loads of trimmings and grinds sold into the spot market.
The USDA-listed the daily weighted average wholesale price for fresh 90% lean beef as $462.77 per cwt, and 50% beef was $141.94.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.18 to $1.33 a bushel over the Sep corn contract, which settled at $4.40 1/2 a bushel, down $0.05 1/4.
The CME Feeder Cattle Index for the seven days ended Thursday was $345.83 per cwt, down $1.86. This compares with Friday’s Aug contract settlement of $347.60 per cwt, up $1.12.