By Dwayne Klassen, Commodity News Service Canada

Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to higher price levels at 9:18 EST. Strength in the outside oilseed markets helped to generate some of the price strength seen in canola, market watchers said.

Gains overnight in e-CBOT soybean activity along with the uptrend in European rapeseed futures helped to stimulate some of the buying seen in canola early Thursday, traders said.

The higher calls for CBOT soybean and soyoil futures with the start of the North American day session were also helping to generate some of the upward price momentum, brokers said.

Steady demand from the domestic processing sector along with the pricing of both old and new expert business was seen adding to the bullish sentiment in the commodity, traders said.

The upward price action in canola was being slowed by steady farmer deliveries of canola into the cash pipeline. The upswing in the value of the Canadian dollar early Thursday was also viewed as an undermining price influence.

Profit-taking at the highs of the day were also anticipated, further tempering the price advances.

Market participants will also be keeping a close eye on the weather in the South American soybean growing regions. Recent rains in dry areas has eased crop concerns, but not completely as more rain is needed.

As of 9:18 EST, there were 2,370 canola contracts traded.

As of 9:18 EST, no western barley, milling wheat, durum or barley contracts had been traded.

Prices in Canadian dollars per metric ton at 9:18 EST: