Speculative short position hits new record in canola

Glacier FarmMedia – Speculators were back adding to their large net short position in canola to start 2024, taking the bearish bet to a new record, according to the latest Commitments of Traders report from the United States Commodity Futures Trading Commission (CFTC).

As of Jan. 9, 2024, the net managed money short position in canola futures came in at 120,758 (6,669 long/127,427 short), which was down by about 12,700 from the previous week.

Open interest in the canola market came in at 248,899 contracts, which was up by 15,592 on the week.

At the Chicago Board of Trade, a combination of long liquidation and new shorts being put on the books saw the recently-established net short position in soybeans increase to roughly 33,300 – the largest net short position since March 2020.

Meanwhile, the net short position in corn also hit its largest level in four years, increasing by about 36,000 contracts on the week to come in at roughly 237,200 contracts.

In wheat, the Chicago soft wheat market reported a net short position of about 61,750 contracts. The net short in Kansas City hard red winter wheat came in at roughly 33,900 contracts. In Minneapolis spring wheat, managed money traders were holding a net short of around 28,800 contracts.

— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.