|
Mumbai, May 18, 2025 (CommoditiesControl.com): Managed Money traders significantly increased their bullish positioning in soybean oil futures during the week ending May 13, 2025, encouraged by expectations of supportive developments in U.S. biofuel policy, according to the latest Commitments of Traders (COT) report issued by the Commodity Futures Trading Commission (CFTC).
Net long positions held by Managed Money rose by 18.8%, or 10,694 contracts, to 67,432 contracts from the previous week’s total of 56,738 contracts. This notable uptick underlines heightened bullish sentiment among speculative traders.
Long positions grew by 3,864 contracts, reaching 115,990 contracts, while short positions fell sharply by 6,830 contracts to 48,558 contracts, demonstrating significant short covering activity. Spreading positions also increased notably, rising by 10,852 contracts to 108,031 contracts, reflecting traders' ongoing hedging activities amidst market volatility.
Total open interest rose by 4% week-over-week, reaching 669,739 contracts, indicating increased market participation and liquidity.
The strengthened bullish sentiment primarily stems from expectations of an upward revision in Renewable Volume Obligations (RVOs) under biodiesel blending mandates from the U.S. Environmental Protection Agency (EPA). Additionally, the implementation of the Section 45Z Clean Fuel Production Credit effective from January 2025—which incentivizes domestic soybean oil usage over imported used cooking oil (UCO)—along with proposed legislative extensions of this credit through 2031, further underpins positive long-term demand outlooks.
Market participants are advised to closely monitor upcoming EPA announcements and legislative developments, as these could significantly impact soybean oil futures pricing trends in the near to medium term.
(By Commoditiescontrol Bureau; +91-9820130172)
|
0 Comments 
Post Comment 
