Canadian canola ends mixed

Canadian canola futures ended mixed on Thursday amid late nearby selling, after receiving support through most of the session from strong US futures and a lack of hedges, traders said. But the market was thin as participants stayed on the sidelines because of recent volatile conditions, which prompted ICE Futures Canada to expand daily trading limits starting Thursday evening.
"I think people are just totally confused. They're topped out," a trader said. "The risk of trading this thing is enormous." ICE canola contracts ended 50 cents per tonne lower to $4.60 higher, with May down 10 cents at $670.70, July up $3 at $686 and November down 50 cents at $670.50. Total canola volume was estimated at 4,942 contracts, down from 10,585 on Wednesday.
The canola market has traded up or down its daily $30 limit eight times since mid-February - volatility that veteran canola traders have said is unprecedented. Daily trading limits for Canadian canola futures will expand to $45 per tonne from $30 per tonne, ICE Futures Canada said late on Wednesday. "At $45 a pop, you can move this market fast on the upside," a trader said.
Canola price limits will expand to $60 per tonne, if the daily settlement price of any two contracts is at the $45 limit, the exchange said. May soyabean oil futures settled 0.32 US cent per pound higher at 62.56 US cents, and May soyabeans were up 7-3/4 US cents per bushel at US $14.02-3/4. An estimated 885 May/July spreads traded from $11.50 to $12.80, 166 July/November from $12.10 to $14.90, premium July, and 180 May/November from $2.20, premium May, to $1.50, premium November.
In canola options, 25 November $700 calls traded at $61.80 and 25 November $710 calls traded at $58.30. Barley futures settled lower despite continued support from speculative buying, a trader said, with May down 40 cents per tonne at $236 and July down $1 at $248.
There was talk that Canada has booked sales of at least two cargoes of feed barley to Saudi Arabia in recent days, a trader said. An estimated 49 May/July spreads traded from $10.10 to $12.50. Total barley volume was estimated at 160 contracts, down from 735 on Wednesday.