Large commodity index funds, known as managed money, trimmed their collective net long live cattle futures position in the week ended Tuesday as hedgers cut their total net short position,
The information came from the weekly Commitments of Traders report from the CFTC Friday. The CFTC publishes its report weekly with information based on the previous Tuesday.
MANAGED MONEY SELLS CATTLE
As of Tuesday, managed money had a collective net long live cattle position of 66,730 contracts, down 617, or 0.92%, from 67,347 a week earlier. It was their first downturn after seven weeks of gains.
At the same time, hedgers, called commercial traders since they deal in the actual cattle, cut their total net short position to 113,672 contracts, down 2,384, or 2.05%, from 116,056 a week earlier.
The CFTC said managed money arrived at their new cattle position by liquidating 636 long positions, adding 19 short positions and putting on 6,768 new spread positions. This left them holding 27.4% of total long open interest, 6.5% of total short open interest and 15.5% of total spread open interest.
Commercials got to where they were by liquidating 1,567 long positions and covering 3,951 short positions, leaving them in possession of 15.1% of total long open interest and 50.7% of total short open interest.
The CFTC also said total live cattle open interest Tuesday was 319,603 contracts, up 6,098, or 1.95%, from 313,505 a week earlier.
CME Group data showed that the most-active Jun contract rose in value during the CFTC-reporting week, settling Tuesday at $185.00 per cwt, compared with $183.95 a week earlier.
MANAGED MONEY SELLS CORN
Meanwhile, managed money took on a larger net short position in Chicago corn futures, with a cumulative sum Tuesday of 81,202 contracts, up 2,576, or 3.28%, from 78,626 a week earlier.
Commercial traders, Tuesday, had a total net short position of 3,530 contracts, down 6,236, or 63.9%, from 9,766 a week earlier.
The CFTC said managed money arrived at their new corn position by liquidating 7,064 long positions, covering 15,197 short positions and unwinding 1,524 spread positions. This left them in control of 11.1% of total long open interest, 26.7% of total short open interest and 17.3% of total spread open interest.
Commercials got to where they were by adding 10,417 long positions and 25,113 short positions, leaving them with 25.0% of total long open interest and 28.2% of total short open interest.
The CFTC said total open interest Tuesday was 1.567 million contracts, up from 1.532 million a week earlier.
The most-active May contract settled at $5.52 ½ a bushel versus $5.47 ½.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers last week ranged from $185.74 per cwt to $192.95, compared with the previous week’s range of $185.00 to $191.26 per cwt. FOB dressed steers, and heifers went for $290.20 per cwt to $299.32, compared with $287.48 to $294.53.
The USDA choice cutout Friday was down $3.01 per cwt at $310.72 while select was off $2.26 at $301.47. The choice/select spread narrowed to $9.25 from $10.00 with 62 loads of fabricated product and 24 loads of trimmings and grinds sold into the spot market.
The daily weighted average USDA listed wholesale price for fresh 90% lean beef was $331.39 per cwt, and 50% beef was $101.65.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.50 to $1.65 a bushel over the May corn contract, which settled at $4.39 1/4 a bushel, down $0.01 1/2.
The CME Feeder Cattle Index for the seven days ended Thursday was $251.38 per cwt, down $0.44. This compares with Friday’s Mar contract settlement of $249.95, down $0.92, and Apr’s $251.50, down $3.12.