The moribund Winnipeg barley contract often goes weeks without a price change or a trade.
But on Aug. 9, October and December barley on ICE Futures Canada rose by $3 and $15 per tonne respectively. The next day, they closed up $3 and $5 tonne.
Yet no barley was traded on either day.
Some might wonder how the price could change if there was no trading.
ICE president and chief executive officer Brad Vannan said prices can be bid up or offered down without any transaction taking place. If that bid price is not superseded by an actual sale, it will be the price posted at the end of the day,
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“That’s keeping in mind that we have a long list of rules and regulations that have to be followed for that to happen,” he added.
For example, the time the bid was made makes a difference. If it comes in five minutes before the market closes, with no time for any response from potential buyers, it will probably not be the posted closing price.
If it comes in 30 minutes before closing, it probably will be, indicating that there were willing buyers in the market at that price level, but no takers.
