MarketsFarm — The speculative short position in canola grew to is largest level in nearly three months in early June, as investors covered longs and put on more bearish bets, according to the latest Commitments of Traders report from the U.S. Commodity Futures Trading Commission (CFTC).
As of Tuesday (June 6), the net managed money short position in canola futures came in at 63,568 contracts (86,977 short, 23,409 long) — an increase of about 9,500 contracts from the previous week.
Open interest in the canola market came in Tuesday at 253,542 contracts, down by 8,830 contracts from the previous week.
Read Also
U.S. grains: Soybeans, corn rebound on technical trading, bargain buying
Chicago soybean and corn futures surged on Thursday on short covering and bargain buying after prices sank low enough to attract buying interest, though supply pressure from favorable U.S. crop conditions continue to loom over the market, analysts said.
At the Chicago Board of Trade, fund traders were holding a net long of about 14,000 contracts in soybeans which was up by about 12,000 from the previous week. Meanwhile, the net short position in corn dipped to 44,500, from 46,800 the previous week.
In wheat, the Chicago soft wheat market reported a net short position of about 122,300 contracts. In Kansas City, hard red winter wheat funds reduced their net long position by roughly 2,300, to 6,400. In Minneapolis spring wheat, managed money traders were holding a net short of around 9,000 contracts.
— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
