What the heck! Canola?

[furrowtickler]

At 8:10pm it was up $14.10 for may, then now it's down over $16?

[DogPatch]

The buyers get everyone excited and jumping to sign up. By the time the word gets around after coffee row, producers get nervous when it drops and pull the trick to lock in a price no better than it was before it momentarily went up. Buyers load up on contracts and make a killing when the price goes up again. Sucker born every minute.

[furrowtickler]

I agree, but overnight trading that active?

[wmoebis]

Want to bet all the merchants best buddies (the big guys) new about the spike and got in on it.

[commonsense]

i would be shocked if all merchants buddies, you know the big boys, weren't in on it. you take all the big companies merchants and all there good buddies thats probably 100 guys at least that knew and were long that contract. the contract with zero open interest of course. and then 1 20 tonne contract traded up overnight so that works out to about 9 bushels each that each of these guys MUST have had (despite there being zero open interest). Most have already put payments on new million dollar houses all at the producers expense...... or maybe, just maybe, it was a couple spread that traded cause someone put it in the wrong month on a 1 lot and then traded out of it. both arguments have merit i suppose. either that or the CWB did it.

[parsley]

http://watch.bnn.ca/clip301748#clip301748

[roju6]

May canola is off the board this week which is why it's so volatile. Nobody is using it to price deliveries anymore, it's just traders settling out positions because anyone that still has a position on after first notice day has to potentially take delivery of physical product or else risk having to deliver physical product. Therefore the prices jump all over the place as traders get out of their positions.

[furrowtickler]

roj, thats all fine, but canola has traded within such a narrow range for a long time and all of a sudden a $30 swing within 30min????

[cityguy]

There was no open interest in the May. Someone just so happened to be bored and looking for something to do. Was there actually a trade? Did the July move with it to keep the spread in line. Chalk it up to the issues with electronic trading,only in this case nothing happened. Again - no open interest.

It's not like someone forget the decmil point in selling PnG shares and took the Dow down 1000 points in 30 minutes. That's an issue. Canola moving $15 one way or another in a month with no open interest isn't.