During the week ended last Tuesday, April 9, managed money sold live cattle futures as hedgers covered many of their short positions, according to data from the Commodity Futures Trading Commission’s weekly Commitments of Traders report Friday.
MANAGED MONEY SELLS CATTLE
As of last Tuesday, managed money, a moniker for large commodity index funds, had a cumulative live cattle futures position of 42,136 contracts, down 18,488, or 30.5%, from 60,624 a week earlier. It was their smallest net long position since Feb. 6 when it was 39,572 contracts.
At the same time, hedgers, called commercial traders, held a total net short position of 95,031 contracts, down 7,169, or 7.01%, from 102,200 a week earlier. It was their smallest short position since Feb. 6 when it was 94,501 contracts.
The CFTC said managed money arrived at their new cattle position by liquidating 14,136 long positions, adding 4,352 short positions and unwinding 2,073 spread positions. This left them in control of 23.5% of total long open interest, 8.5% of total short open interest and 14.6% of total spread open interest.
Commercials got to their new position by liquidating 2,982 long positions and covering 10,151 short positions, leaving them with 16.0% of total long open interest and 49.7% of total short open interest.
CFTC data also showed that the total live cattle open interest last Tuesday was 281,774 contracts, down 20,375, or 6.74%, from 302,149 a week earlier.
CME Group data showed that the most-active Jun contract declined in value during the CFTC-reporting week to settle last Tuesday at $174.85 per cwt, compared with $176.37.
FUNDS GET SHORTER CORN
Last Tuesday, managed money had a total net short corn position of 255,666 contracts, up 5,651, or 2.26%, from 250,015 a week earlier.
Meanwhile, commercials had a total net short position of 34,594 contracts, down 833, or 2.35%, from 35,427 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 10,088 long positions, covering 4,437 short positions and unwinding 35,306 spread positions. This left them holding 10.3% of total long open interest, 26.7% of total short open interest and 16.7% of total spread open interest.
Commercials got to where they were by adding 413 long positions and covering 420 short positions, leaving them in charge of 25.7% of total long open interest and 27.9% of total short open interest.
CFTC data showed that total corn open interest last Tuesday was 1.558 million contracts, down from 1.621 million a week earlier.
The CME Group said the most-active Jul contract $4.42 ½ $4.41.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $183.08 per cwt to $183.19, compared with last week’s range of $182.00 to $190.00 per cwt. FOB dressed steers, and heifers went for $292.36 per cwt to $292.36, compared with $289.57 to $295.37.
The USDA choice cutout Monday was up $0.31 per cwt at $300.88 while select was down $4.20 at $291.34. The choice/select spread widened to $9.54 from $5.03 with 75 loads of fabricated product and 15 loads of trimmings and grinds sold into the spot market.
The daily weighted average USDA listed wholesale price for fresh 90% lean beef was $346.12 per cwt, and 50% beef was $92.37.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.40 to $1.50 a bushel over the May corn contract, which settled at $4.31 1/2 a bushel, down $0.04.
No live cattle contracts were tendered for delivery Monday.
The CME Feeder Cattle Index for the seven days ended Friday was $241.87 per cwt, down $3.50. This compares with Friday’s Apr contract settlement of $239.55, up $1.95.