Speculators added to their net short positions in canola during the week ended Nov. 13, according to the latest Commitment of Traders (CoT) report compiled by the United States Commodity Futures Trading Commission (CFTC).
Managed money and other reportable speculators increased their net short position to roughly 29,400 contracts in canola during the reporting period, which compares with the net short of about 24,000 seen the previous week. Long liquidation was minimal, with the creation of new shorts behind much of the move.
Increasing short positions are seen as a bet that prices will fall, which was evidenced by the continued declines in the futures during the week.
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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.
Meanwhile, commercials also put on new shorts, but also more new longs and grew their net long position by about 5,000 contracts, to 29,355.
Total open interest in the canola market increased by about 10,500 contracts compared to the previous week, to come in at 166,224 contracts.
At the Chicago Board of Trade, speculators increased their net short position in soybeans to about 41,000 contracts, from 30,000 the previous week.
Market participants usually follow the movements in the funds with interest, as large speculative positions have the potential to independently move the futures.
