WINNIPEG: ICE Canadian canola futures dropped the daily limit on Wednesday, hit overnight by a suspected trading error, before paring losses that were seen as excessive.
The market plunged in a flash crash that may have been due to an error or a large sell stop being hit, traders said.
Prices pared back most of the losses, but remained lower on the day due to pressure from weaker soy prices amid a global sell-off on pandemic concerns.
Most-active January canola lost $8.40 to $535.60 per tonne.
January-March canola spread traded 3,811 times.
US corn and soyabeans corrected lower as France and Germany reimposed lockdowns as a second wave of infections swept Europe.
Euronext February rapeseed futures also fell and Malaysian January palm oil futures eased.
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