Speculative fund traders were heavy sellers in the canola market over the past week, sharply reducing their overall long positions in the commodity.
In the span of only a few trading days, the fund net long position has dropped from over 20,000 to around 5,000, said a commission house broker.
"It dropped pretty significantly last week," said the broker.
The fund position may now be at a more manageable level, which should minimize any future liquidation, he said.
Most of the remaining longs have already been rolled into the January contract, said the broker.
Market participants usually follow the movements in the funds with interest, as it is said that a position of 10,000 contracts or more can independently move the futures.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.
