Funds post record selloff in CBOT soyaoil as US supplies build

Large speculators have again adopted strongly bearish views in Chicago-traded soyabean oil just a couple weeks after having quickly abandoned them, emphasising the recent heaviness in global vegetable oil prices.

In the week ended April 16, money managers’ net short position in Chicago Board of Trade (CBOT) soyabean oil futures and options surged to 53,295 contracts from 4,128 a week earlier, the largest weekly net selling in records back to 2006.

End users and other speculators were on the opposite side.

Other reportable traders were net buyers of more than 19,000 soyaoil futures and options contracts, a weekly record, and market participants, such as merchants and processors, were net buyers of almost 27,000 contracts, the most since late 2022.

Soyabean oil futures fell more than five per cent in the week ended April 16, facing the sharpest slide yet this year. United States soyaoil demand amid the recent renewable diesel push has been disappointing, and domestic soyaoil stocks have risen to 10-month highs, surpassing analyst predictions.

Money managers’ recent moves in CBOT soya-bean meal reflect the unwinding of long oil-short meal positions. Soyameal futures slightly weakened in the week ended April 16, though the managed money net short tumbled to 10,543 futures and options contracts from 24,072 a week earlier.

That marked funds’ least bearish meal view in three months. However, their net short in CBOT soyabeans reached a six-week high on April 16, surging to 167,875 futures and options contracts from 139,310 a week earlier.

New gross shorts accounted for much of the move.