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Net fund short position grows in canola

CNS Canada — Fund traders added to their net short positions in canola during the week ended Tuesday, according to the latest commitment of traders (CoT) report from the U.S. Commodity Futures Trading Commission (CFTC).

According to the latest report, managed money and other reportable speculators increased their net short position to roughly 44,000 contracts in canola during the week ended Tuesday, an increase of about 5,000 on the short side from the previous week.

Long liquidation was minimal, with the creation of new shorts behind much of the move.

Increasing short positions are seen as a bet that prices will fall.

Commercials and producers grew their net long position in the market by a similar amount, to 44,200.

Total open interest in the canola market increased by about 12,000 contracts compared to the previous week, to come in at 184,186 contracts.

For canola, less than one per cent of the total open interest was counted as non-reportable in the latest CoT report. That compares with soybeans at the Chicago Board of Trade, where about 10 per cent of the open interest was non-reportable.

At the CBOT, speculators lowered their net short position in soybeans slightly, to about 39,900 contracts, from 42,300 the previous week.

— Phil Franz-Warkentin writes for Commodity News Service Canada, a Glacier FarmMedia company specializing in grain and commodity market reporting.

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