Canola funds still short, despite active U.S. covering

(Dave Bedard photo)

MarketsFarm — Speculators continue to sit on a large net short position in ICE canola futures, only reducing their holdings slightly in late May, according to the latest commitment of traders (CoT) report from the U.S. Commodity Futures Trading Commission (CFTC).

Managed money and other reportable speculators had a net short position of 71,065 contracts on Tuesday (May 28), a decrease of about 1,700 from the previous week, according to the report.

Open interest in the canola market declined by roughly 8,700 contracts, to 181,548 during the week.

At the Chicago Board of Trade, the net speculative short position narrowed in to just under 77,000 contracts in soybeans as fund traders actively covered their position and corn traders moved to the long side.

The net soybean short position had been at around 100,000 contracts the previous week.

— Phil Franz-Warkentin writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.


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