Large commodity index funds, known as managed money, reduced their net long live cattle futures positions in the week ended Tuesday as hedgers cut their net short position.
The information was reported by the Commodity Futures Trading Commission Friday in its weekly Commitments of Traders report.
MANAGED MONEY CUTS LONG POSITION
Tuesday, managed money had a collective net long live cattle position of 60,624 contracts, down 5,087, or 7.74%, from 65,711 a week earlier. It was their third straight week of lower net long positions.
At the same time, hedgers, known as commercial traders since they own, or will own, the cattle represented by a futures contract, cut their total net short live cattle position for the third straight week. Their new position was 102,200 contracts, down 5,039, or 4.70%, from 107,239 a week earlier.
The CFTC said managed money arrived at their new live cattle position by liquidating 3,896 long positions, adding 1,191 short positions and unwinding 2,003 spread positions. This left them in charge of 26.8% of total long open interest, 6.5% of total short open interest and 14.3% of total spread open interest.
Commercials got to where they were by adding 2,535 long positions and covering 2,504 short positions, leaving them in possession of 15.9% of total long open interest and 49.7% of total short open interest.
The CFTC also reported that total live cattle open interest Tuesday was 302,149 contracts, down 4,705, or 1.53%, from 306,854 a week earlier.
The CME Group’s most-active Jun contract declined in value during the CFTC-reporting week to settle Tuesday at $176.37 per cwt, versus $178.37 a week earlier.
FUNDS INCREASE NET SHORT CORN POSITION
Tuesday, managed money had a collective net short Chicago corn position of 250,015 contracts, up 4,552, or 1.85%, from 245,463 a week earlier.
Commercials, Tuesday, had a total net short corn position of 35,427 contracts, up 865, or 2.50%, from 34,562 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 5,133 long positions, covering 581 short positions and adding 12,367 spread positions. This left them with 10.5% of total long open interest, 26.0% of total short open interest and 18.2% of total spread open interest.
Commercials got to where they were by liquidating 790 long positions and adding 75 short positions, leaving them with 24.7% of total long open interest and 26.9% of total short open interest.
The CFTC reported total corn open interest at 1.621 million contracts, up from 1.592 million a week earlier.
The CME said the most-active May contract declined in value to settle at $4.25 ½ a bushel versus $4.32 ½.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $185.94 per cwt to $195.38, compared with the previous week’s range of $188.79 to $194.99 per cwt. FOB dressed steers, and heifers went for $293.28 per cwt to $299.46, compared with $294.13 to $302.18.
The USDA choice cutout Friday was up $0.02 per cwt at $297.17 while select was off $1.35 at $294.70. The choice/select spread widened to $2.47 from $1.10 with 108 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 $346.15 per cwt, and 50% beef was $96.54.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.40 to $1.55 a bushel over the May corn contract, which settled at $4.34 1/4 a bushel, down $0.01.
The CME Feeder Cattle Index for the seven days ended Thursday was $249.97 per cwt, down $0.93. This compares with Friday’s Apr contract settlement of $237.70, down $5.00.