Canola funds cover shorts, move to net long

Reading Time: < 1 minute

Published: October 20, 2018

, ,

(Dave Bedard photo)

CNS Canada — Speculators covered short positions in the ICE Futures canola market during the week ended Tuesday, moving from a net short position to a small net long position, according to the latest commitment of traders (CoT) report from the U.S. Commodity Futures Trading Commission (CFTC).

Managed money and other reportable speculators moved from a net short position of about 5,000 contracts in canola to a net long of 1,300 contracts during the reporting period.

Meanwhile, commercial traders went the other way, moving from a net long position to a net short of about 900 contracts. Most of the activity on the commercial side was tied to long liquidation rather than any new shorts being put on.

Read Also

Demand for organic pulses had been steadily rising before the COVID-19 outbreak, but supply chains are prepared to meet the new demand. Photo: File

U.S. pulse group commits to doubling production in five years

The pulse industry in the United States has plans to double production and consumption of pulse crops by 2030, USA Pulses announced at their annual conference held in Spokane, Washington, July 7-10.

Total open interest in the canola market fell by about 20,000 contracts compared to the previous week, to come in at about 158,000 contracts.

Market participants usually follow the movements in the funds with interest, as large positions have the potential to independently move the futures.

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

About the author

Phil Franz-Warkentin

Phil Franz-Warkentin

Editor - Daily News

Phil Franz-Warkentin grew up on an acreage in southern Manitoba and has reported on agriculture for over 20 years. Based in Winnipeg, his writing has appeared in publications across Canada and internationally. Phil is a trusted voice on the Prairie radio waves providing daily futures market updates. In his spare time, Phil enjoys playing music and making art.

explore

Stories from our other publications