MarketsFarm — Fund traders added to their large net short position in canola during the week ended Tuesday (Sept. 10), according to the latest commitment of traders (CoT) report from the U.S. Commodity Futures Trading Commission (CFTC).
The net managed money short position in canola came in Tuesday at 73,025, an increase of about 7,000 contracts from the previous week.
Open interest in the canola market rose by 10,413 contracts, to 177,393 during the week.
However, canola rallied in the days following the Sept. 10 data, with speculative short-covering thought to be a key driver of the move, according to market participants. November canola settled at $437.90 per tonne on Tuesday, but rallied by roughly $10 per tonne over the following three days.
At the Chicago Board of Trade the managed money net short position in soybeans increased by roughly 18,000 contracts, to 90,013 contracts as of Tuesday.
Meanwhile, the net managed money short position in corn grew by nearly 20,000 contracts, to roughly 144,500, as bearish investors continued to liquidate longs and put on new short positions.
However, speculative short-covering also underpinned soybeans and corn during the remainder of the week ended Friday (Sept. 13).
— Phil Franz-Warkentin writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.Tagged Canola, cbot, CFTC, commitment of traders, Corn, funds, ICE Futures, investors, longs, short position, Soybeans