WINNIPEG, Manitoba--Intercontinental Exchange (ICE) canola futures finished higher on Tuesday, but down from much larger gains due to profit-taking.
During the overnight session, the November and January positions hit new contract highs when they peaked at the expanded daily limit of C$60 per tonne. That higher limit also opened the way for a sharp jump in trading volumes.
ICE dropped the limit to C$45 per tonne for Wednesday's trading.
The ongoing hot temperatures and drought on the Prairies has caused a good amount of crop stress, including canola.
With already very tight supplies of the Canadian oilseed, price rationing in the market has been attempting to stymie demand. A harvest very likely to fall well short of the initial projections has further compounded the situation.
Gains in the Chicago soy complex provided additional support for canola, as did increases in European rapeseed and Malaysian palm oil.
Weakness in the Canadian dollar was also supportive, with the loonie at 79.90 U.S. cents at mid-afternoon compared to Monday's close of 80.19.
There were 32,899 contracts traded on Tuesday, which compares with Monday when 7,329 contracts changed hands.
Spreading accounted for 8,464 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Nov 916.80 up 27.80
Jan 907.60 up 26.30
Mar 892.50 up 23.10
May 872.60 up 23.50
Spread trade prices are Canadian dollars and the volume represents the number of spreads:
Months Prices Volume
Nov/Jan 14.40 over to 8.30 over 2,845
Nov/Mar 29.50 over to 24.80 over 60
Nov/May 48.20 over to 45.40 over 58
Nov/Nov 226.00 over to 218.40 over 22
Jan/Mar 15.90 over to 13.40 over 638
Jan/May 35.00 over 27
Mar/May 23.90 over to 16.20 over 252
May/Jul 29.50 over to 25.00 over 272
Jul/Nov 155.00 over to 134.40 over 46
Nov/Jan 18.00 over to 17.90 over 7
Jan/Mar 10.00 over 5
Source: Commodity News Service Canada
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(END) Dow Jones Newswires