Canola contracts on the ICE Futures Canada trading platform posted record daily trade volumes on Tuesday, far surpassing the previous record set only a week earlier.
There were 68,962 canola contracts traded on the Winnipeg-based electronic market on Tuesday, according to preliminary trade data. That’s well above the previous daily record of 51,805 contracts set on Dec. 4.
Prior to that, the record of 49,165 contracts had held since June 9, 2010.
ICE data shows that total open interest canola was sitting at 231,971 contracts ahead of Tuesday’s session. That’s an increase of about 30,000 contracts over the past month and the largest open interest since September 2012.
Market participants said the majority of the volume on Tuesday was tied to intermonth spread activity, with over 65,000 of the contracts traded linked to spreading.
Statistics Canada released updated production estimates on Dec. 4, pegging the country’s 2013-14 canola crop at a record 17.96 million tonnes.
The production number was at the high end of trade estimates and about four million tonnes larger than the previous year. The record-large supplies were said to be playing a part in the record-large trade volumes recently. — CNSC