MarketsFarm — Fund traders added to their sizeable long positions in canola during the week ended Tuesday (Sept. 8), hitting the largest net long position in the two years of available data.
The latest commitment of traders (CoT) report compiled by the U.S. Commodity Futures Trading Commission (CFTC) showed managed money fund traders were holding a net long position in ICE Futures canola of 48,112 contracts (49,623 long/1,511 short) as of Sept. 8.
That’s up by about 12,000 contracts on the week, due to a combination of short-covering and new longs being put on.
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
Open interest in the canola market increased by about 6,800 contracts on the week, coming in at 228,786 contracts.
At the Chicago Board of Trade, the managed money net long position in soybeans was up by about 14,000 contracts, at around 171,268.
The corn market saw its net long position grow to about 24,000, from 8,400 the previous week.
In wheat, activity was mixed. Chicago soft wheat saw its net long position decline by about 10,000, to 32,100 contracts. K.C. hard red winter wheat posted a small net long of about 8,700 contracts. Minneapolis spring wheat reported a net short position of about 5,000 contracts, down about 5,000 from the previous week.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
