CNS Canada — Fund traders have steadily added to their large short positions in canola in recent weeks, with trade estimates placing the net position at about 20,000 in the November contract.
“Funds are short canola and will stay short canola until we see a significant bounce back, and I don’t see that coming any time soon,” said a broker.
While a short-covering correction is a possibility, the broker said a bearish chart outlook for the time being would likely see the funds continue to add to their shorts on any bounces.
Market participants usually follow the movements in the funds with interest, as it is said that a position of 10,000 contracts or more can independently move the futures.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.
