WINNIPEG (Staff) – The Winnipeg Commodity Exchange moved to close all trade on its June canola contract last week, one week ahead of the contract’s normal expiry date.
“It was clearly evident that the entire open interest could not be accommodated by deliveries,” said president Fred Siemens.
“It had reached the stagnation point.”
Earlier in the month, the exchange had issued a liquidation-only order, which closed all trade except for liquidation of contracts. It has already stepped up monitoring of its August canola contract.
Siemens said more details on why the exchange intervened in the market will be released later this month.
