According to the latest Commitments of Traders report from the U.S. Commodity Futures Trading Commission, managed money fund traders are finally covering their bearish bets, after hitting the largest speculative short position in canola on record.

As of March 28th, the net managed money short position in canola futures came in at 63,005 contracts, a decline of about 12,000 contracts from the previous week.

Open interest in the canola market came in at 296,705 contracts on March 28th, which was down by about 14,000 from the previous week.

An analyst expected to see more fund selling over the next few weeks, especially given the recent rally in crude oil, as fund traders will want to exit the May contract ahead of its expiry.