MarketsFarm — The daily price limit (DPL) for canola futures contracts on the ICE Futures platform will rise to $60 per tonne starting Nov. 1, the exchange announced Tuesday.
The DPL determines how much a contract can move in a given session above or below the previous settlement. The new level compares with the current limit of $50 per day.
The DPL will no longer apply to an expiring futures contract starting on the last trading day prior to the first notice day of the contract. For the November 2021 futures contract, the DPL will no longer apply starting Thursday (Oct. 28).
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The rules governing the ICE canola futures see that the daily limits are adjusted twice a year, at the beginning of May and the beginning of November.
For this upcoming adjustment, the limit was calculated as seven per cent of the average of the settlement prices for the January 2022 contract for a 45-day trading period ended Oct. 15, rounded to the nearest $5.
The next change to the DPL will be effective May 1, 2022, and will be based off of average settlement prices for the July 2022 contract ahead of that adjustment.
Full details of the ICE canola contract specifications can be found here.
