For the fifth straight week, large commodity index funds, known as managed money, divested themselves of part of their collective net long live cattle futures position.
At the same time, cattle owner, known as commercial traders, covered part of their total net short live cattle futures position.
The information came from the weekly Commitments of Traders report from the Commodity Futures Trading Commission Friday covering data as of Tuesday.
MANAGED MONEY SELLS CATTLE
Tuesday, managed money had a collective net long live cattle position of 37,032 contracts, down 5,104, or 12.1%, from 42,136 a week earlier. It was their smallest position since Jan. 30 when it was 30,016 contracts.
Commercial traders Tuesday had a total net short cattle position of 88,452 contracts, down 6,579, or 6.92%, from 95,031 a week earlier. It was their smallest position since Jan. 30 when it was 83,498 contracts.
The CFTC said managed money came to its new position by liquidating 5,067 long positions, adding 37 short positions and unwinding 350 spread positions. This left them with 22.4% of total long open interest, 8.8% of total short open interest and 14.9% of total spread open interest.
Commercials got to where they were by liquidating 897 long positions and covering 7,476 short positions, leaving them with 16.2% of total long open interest and 48.6% of total spread open interest.
CFTC data showed total live cattle open interest Tuesday at 273,036 contracts, down 8,738, or 3.10%, from 281,774 a week earlier.
CME data showed the most-active Jun contract rose during th C FTC-reporting week to settle at $175.72 per cwt, compared with $174.85 a week earlier.
FUNDS SELL EVEN MORE CORN
Tuesday, managed money had a collective net short Chicago corn position of 271,600 contracts, up 15,934, or 6.23%, from 255,666 a week earlier.
Commercials, Tuesday, had a total net short corn position of 16,111 contracts, down 18,483, or 53.4%, from 34,594 a week earlier.
The CFTC said managed money arrived at their new position by liquidating 844 long positions, adding 15,090 short positions and unwinding 34,757 spread positions. This left them with 10.5% of total long open interest, 28.4% of total short open interest and 14.8% of total spread open interest.
Commercials got to where they were Tuesday by adding 4,084 long positions and covering 14,399 short positions, leaving them with 26.6% of total long open interest and 27.6% of total short open interest.
The CFTC said total corn open interest Tuesday was 1.521 million contracts, down from 1.558 million a week earlier.
The CME said the most-active Jul contract settled Tuesday at $4.42 ¾ a bushel, compared with $4.42 ½ a week earlier.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $182.00 per cwt to $185.81, compared with the previous week’s range of $182.00 to $192.35 per cwt. FOB dressed steers, and heifers went for $287.22 per cwt to $292.58, compared with $289.57 to $295.37.
The USDA choice cutout Friday was down $0.13 per cwt at $295.67 while select was up $1.56 at $290.83. The choice/select spread narrowed to $4.84 from $6.53 with 97 loads of fabricated product and 29 loads of trimmings and grinds sold into the spot market.
The daily weighted average USDA listed wholesale price for fresh 90% lean beef was $349.31 per cwt, and 50% beef was $88.47.
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 $4.33 1/2 a bushel, up $0.06 3/4.
No live cattle contracts were tendered for delivery Friday.
The CME Feeder Cattle Index for the seven days ended Thursday was $241.73 per cwt, down $0.62. This compares with Friday’s Apr contract settlement of $241.32, down $0.27.