Bearish bets decline in canola

(Dave Bedard photo)

MarketsFarm — While speculators were increasing bearish bets for Chicago soybeans and corn during the week ended Tuesday, canola traders were taking back some of their large net short positions.

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 canola came in Tuesday at 62,248, a decrease of roughly 4,000 contracts from the previous week.

Open interest in the canola market rose by 2,391 contracts, to 161,879 during the week.

At the Chicago Board of Trade, fund traders were back on the sell side in soybeans, with the managed money short position in the commodity increasing by nearly 10,000 contracts, to roughly 76,800 contracts.

Meanwhile, investors liquidated long positions and put on fresh shorts in corn, moving to a net short position in the grain for the first time in months.

The managed money net short position in corn came in at about 82,000 contracts, which compares with a net long position of 21,500 the previous week. The net long position in corn had been above 200,000 contracts at one point in June.

— Phil Franz-Warkentin writes for MarketsFarm, a Glacier FarmMedia division specializing in grain and commodity market analysis and reporting.

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