Canola funds’ position shifts to net short

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Published: July 9, 2022

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(File photo by Dave Bedard)

MarketsFarm — Speculative fund money in ICE Futures canola shifted to a net short position for the first time in two years, according to the latest Commitment of Traders (CoT) report compiled by the U.S. Commodity Futures Trading Commission (CFTC).

The net managed money short position in ICE Futures canola came in at 677 contracts on Tuesday (10,052 long/10,729 short). That compares with the small net long position of just over 3,000 contracts reported the previous week, due to a combination of long liquidation and new shorts being put on the books.

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The last time the CoT report showed a net short for canola was in July 2020, with speculators having held a net long of over 70,000 contracts as recently as January this year.

Open interest in the canola market managed to move higher despite the long liquidation, growing by about 2,000 contracts at 130,952.

At the Chicago Board of Trade, fund traders reduced their net long position in soybeans by about 20,000 contracts, taking it to about 101,000 contracts with long liquidation and new short positions evenly split.

The managed money net long position in corn fell by roughly 53,000 contracts, to about 158,000.

In wheat, the Chicago soft wheat market reported a small net short position of about 2,000 contracts, with fund traders holding large positions on both sides of the market (63,597 long/65,575 short). Kansas City and Minneapolis wheats both saw their net long positions decline by about 2,700, at 22,000 and 5,100 respectively.

— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.

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.

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