MarketsFarm — Fund traders were covering short positions in canola during the week ended Tuesday, 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 ICE Futures canola came in Tuesday at 48,614 contracts (886 long/49,500 short), a decrease of about 10,000 contracts from the previous week.
Open interest in the canola market declined by about 6,900 contracts, to 175,291 during the week.
At the Chicago Board of Trade, the managed money net-short position in soybeans of 4,715 contracts was down considerably from the previous week, as traders were both liquidating longs and covering short positions.
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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.
Corn speculators were liquidated about 18,000 long contracts during the week to take the net-short to 112,225 contracts.
The fund activity was mixed in wheat, with long liquidation a feature in Chicago soft wheat while speculators were on both sides of the market in the Kansas City and Minneapolis contracts.
Chicago wheat moved back to a net long position of about 20,000 contracts during the week. The K.C. hard red winter contract reported a net short position of 5,923 contracts, while managed money was holding a net short of just over 16,000 spring wheat contracts.
— Phil Franz-Warkentin reports for MarketsFarm from Winnipeg.
