WINNIPEG, (Manitoba): ICE nearby canola futures broke through $1,000 per tonne for the first time on Friday, as short investors faced a squeeze and already depleted Canadian stocks looked slightly smaller than expected.

Statistics Canada estimated March 31, 2020 crop stocks at 6.6 million tonnes, slightly lower than average trade expectation of 6.7 million tonnes, and down from 10.6 million a year earlier.

With supplies so tight in the physical market, exporters are scrambling to cover obligations to buyers through futures before prices rise even further, traders say. Funds holding long positions are seen booking big profits.

“Assigning rational thought in current conditions is not recommended,” a broker said.

July canola climbed $42.40 to settle at $1,005.90 per tonne, setting an all-time high of $1,008, and trading under an expanded daily price limit.

New-crop November canola, the most actively traded contract, fell, despite concerns about dry conditions.

July-November canola spread traded 3,005 times.

Global supply concerns pushed Chicago Board of Trade corn futures to their highest price since March 2013, while soybeans climbed to their highest since 2012.

Euronext August rapeseed futures edged higher and Malaysian July palm oil futures jumped 5%. China’s 2021 rapeseed output seen up 2.8% year over year – government think-tank.