After 13 weeks of increases, large commodity index funds, known as managed money, reduced their collective net long position in live cattle futures as hedgers cut their total net short position after four straight weeks of increases.
The data came from the Commodity Futures Trading Commission’s weekly Commitments of Traders report, which was delayed by the Christmas Day holiday from its usual Friday date and shows positions as of the previous Tuesday, Dec. 24.
FUNDS NOT AS LONG
As of last Tuesday, managed money had a collective net long live cattle position of 132,096 contracts, down 4,117, or 3.02%, from 136,213 a week earlier, which was the most in more than two years.
Meanwhile, hedgers, better known as commercial traders, had a total net short live cattle position of 138,814 contracts, down from 147,694 a week earlier, which also was the largest in more than two years.
The CFTC said managed money arrived at their new cattle position by liquidating 6,230 long positions, covering 2,113 short positions and unwinding 1,206 spread positions. This left them with 41.6% of total long open interest, 2.7% of total short open interest and 11.5% of total spread open interest.
Commercial traders reached their new cattle position by adding 873 long positions and covering 8,007 short positions, leaving them in control of 10.3% of total long open interest and 51.2% of total short open interest.
CFTC data showed total live cattle open interest as of last Tuesday to be 339,278 contracts, down 11,144, or 3.18%, from 350,422 a week earlier.
The CME Group said the most-active Feb live cattle contract declined in value during the CFTC-reporting week to settle at $187.37 per cwt, versus $189.75 a week earlier.
FUNDS BUY CORN
Last Tuesday, managed money had a collective net long Chicago corn position of 165,606 contracts, up 7,901, or 5.01%, from 157,705 a week earlier.
At the same time, commercials had a total net short position of 460,282 contracts, up 2,128, or 0.46%, from 458,154 a week earlier.
The CFTC said managed money arrived at their new corn position by adding 2,597 long positions, covering 2,102 short positions and putting on 615 spread positions. This left them holding 19.5% of total long open interest, 9.3% of total short open interest and 12.9% of total spread open interest.
Commercials reached their new position by liquidating 1,769 long positions and adding 359 short positions, leaving them with 25.2% of total long open interest and 53.2% of total short open interest.
Total open interest was 1.624 million, versus 1.617 million a week earlier, and Mar rose to $4.48 ½.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $191.11 per cwt to $194.49, compared with last week’s range of $191.00 to $196.58 per cwt. FOB dressed steers, and heifers went for $302.75 per cwt to $306.55, compared with $300.56 to $308.10.
The USDA choice cutout Tuesday was down $1.15 per cwt at $324.22 while select was off $0.24 at $294.52. The choice/select spread narrowed to $29.70 from $30.61 with 98 loads of fabricated product and 21 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $319.37 per cwt, and 50% beef was $85.87.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.19 to $1.35 a bushel over the Mar corn contract, which settled at $4.58 1/2, up $0.06 1/2.
No delivery intentions were posted for the Dec live cattle contract Tuesday.
The CME Feeder Cattle Index for the seven days ended Monday was $261.05 per cwt, up $7.08. This compares with Tuesday’s Jan contract settlement of $263.02, up $1.67.