CNS Canada — Large speculators covered short positions in the ICE Futures canola market during the week ended Tuesday, cutting their net short position roughly in half, according to the latest Commitment of Traders (CoT) report from the U.S. Commodity Futures Trading Commission (CFTC).
Managed money and other reportable speculators reduced their net short position in canola to 15,900 contracts by the end of the reporting period, down by more than 15,000 contracts from the previous week.
Meanwhile, commercial traders also saw their net long positions decrease sharply, to about 16,000 contracts, as long-liquidation more than made up for the short-covering.
Total open interest in the canola market declined by about 36,000 contracts from the previous week, to 157,383.
The move from Winnipeg to the New York-based ICE Futures U.S. platform means that canola now falls under the jurisdiction of the U.S. CFTC. Speculative fund positions were not officially reported prior to the move to the U.S. platform at the end of July 2018.
Market participants usually follow the movements in the funds with interest, as large positions have the potential to independently move the futures.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Glacier FarmMedia company specializing in grain and commodity market reporting.