CNS Canada — Large speculators continued to add to their net short positions in the ICE Futures canola market during the week ended Tuesday, according to the latest Commitment of Traders report compiled by the U.S. Commodity Futures Trading Commission (CFTC).
Managed money and other reportable speculators grew their net short position in canola to 31,630 contracts during the reporting period, which was up by about 4,000 contracts from the previous week, according to the report.
Meanwhile, commercial traders saw their net long position increase by about 4,000 contracts, to 31,959 contracts.
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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.
Total open interest in the canola market grew by about 9,000 contracts from the previous week, to 193,445.
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.
