Canola futures ended stronger on Tuesday, hitting new multi-year highs in the front months before running into resistance.
The most active March contract was up by its C$30/tonne daily limit at one point during the day, moving above $700 in the front month for the first time since 2008.
The price activity was seen as a short-squeeze, with end users sitting on previously sold positions being forced to buy them back. Meanwhile, speculators on the long-side of the market took the opportunity to book some profits as prices rose, keeping values well off their session highs by the close.
March canola closed up $17.50 at $693.20, May gained $9.90 to $663.90 and July added $5.90 to $642.80.
Source: DePutter Publishing Ltd.
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