ICE Canadian canola futures fell their daily limit on Tuesday as worries about Japan's nuclear crisis triggered a broad sell-off in commodity and equity markets, traders said. Financial markets roiled by fear of Japan disaster as investors seek the safety of government debt.
Nearby May canola declined for a seventh straight session, the longest losing streak in more than two years. Funds were featured sellers, liquidating long positions as well as establishing new short positions. May canola settled down the daily maximum of $30 at $525 a tonne, the lowest spot price in four months. Volume 13,602. July ended down $30 at $532.90, volume 2,352. ICE said the daily limit in canola would expand to $45 a tonne for Wednesday's trade, following Tuesday's limit drop. In options, 360 May $600 calls traded at $4 and 200 May $550 puts traded at $12.50 - traders.