Managed money, a term for large investment funds, reduced its net long live cattle position during the week ended Tuesday for the second straight week as commercial traders increased their net short position slightly.
The Commodity Futures Trading Commission Friday reported that for its latest reporting week ended Tuesday, that managed money cut its net long cattle position 3,265 contracts, or 13.9%, to 20,272 from 23,537 the previous week. This was the lowest net long position for these traders since the week ended Feb. 23 when it was 15,865 contracts.
At the same time, commercial traders, those who theoretically could make or take delivery of a futures contract, increased their net short position to 64,320 contracts from 63,903, a gain of 417, or 0.65%.
The CFTC said managed money arrived at its new net long cattle position by adding 2,737 new long positions and 6,002 short positions while covering 3,553 spread positions. This left them representing 24.5% of total long open interest and 17.2% of total short open interest.
Commercial traders got to where they were by adding 1,065 new long positions and 1,482 short positions, leaving them in control of 15.7% of total long open interest and 38.9% of total short open interest.
The CME Group said total live cattle open interest during the latest CFTC reporting week rose 2,639 contracts, or 0.96%, to 277,287 contracts from 274,648.
During the latest week, the most-active Jun live cattle contract declined to close at $116.37 per cwt from its close the previous Tuesday of $118.75. In between, it challenged the contract low of $113.90 with a low of $114.07 on Friday.
MANAGED MONEY CASHES SOME LONG CORN
During the week ended Tuesday, managed money cut its net long corn position from a seven-month high of 74,653 contracts last week to 63,298, the CFTC reported. This was a drop of 11,355, or 15.2% and ended a three-week net buying streak.
During the same week, commercial traders pruned their net short position by 1,180 contracts, or 0.32%, to 369,654 from 368,474. This ended a three-week selling streak that took them to their largest net short position since the week ended Aug. 4 when it was 380,369 contracts.
The CFTC said managed money arrived at its new position by liquidating 5,754 long positions and adding 5,601 short
Commercial traders got to where they were by liquidating 14,683 long positions and covering 13,703 short positions.
Total corn open interest during the week declined 40,931 contracts, or 2.91%, to 1.364 million from 1.405 million, according to the CME Group.
During the latest CFTC week, the most-active Jul contract hit three tops near $3.95 ¼ a bushel as it moved to a close Tuesday of $3.79 ¾ from a close the previous Tuesday of $387 ¼.
CASH CATTLE MARKET $2 TO $4 HIGHER
Cash cattle markets last week was $2 to $4 per cwt higher at $126 to $128 per cwt on a live basis and $3 higher in dressed markets at $198 to $200.
The USDA’s choice cutout Friday was lower at $203.74 per cwt, down $0.68, while select was off $1.18 at $194.32. The choice/select spread widened to $9.42 from $8.92 with 142 loads of fabricated product sold into the spot market.
For the week, choice product was down $7.71 per cwt from $211.45, while select was down $7.95 from $202.27/
The CME Feeder Cattle Index for the seven days ended Thursday was $144.48 per cwt, up $0.44$1.54. This compares with the May settlement Friday of $147.37, down $0.57.