CBOT oats trading limits expand after rally to record high $5.03
CHICAGO Feb 25 (Reuters) - The daily trading limit for Chicago Board of Trade oat futures and options will increase to 30 cents a bushel when the markets reopen after the front month contract rallied the 20-cent limit to an all-time high of $5.03 on Tuesday.
This is the second time in less than a week that the CBOT's parent, the CME Group Inc, expanded price limits.
The red-hot oat market continues to make new highs as delays moving the grain out of Canada into the United States have limited the amount available to process into food products or to feed to livestock.
Record crops of wheat and canola, along with frigid weather, overwhelmed Canadian National Railway Co and Canadian Pacific Railway Ltd this winter, resulting in overdue orders for tens of thousands of grain cars.
Technical buy signals, which triggered speculative fund buying, coupled with light trading volume adds to market volatility, traders said.
March oats, which trade at a fraction of the volume of CBOT corn futures, closed at a 47-1/4 cent premium to CBOT March corn , another first. Typically, corn is priced at a premium to oats.