By Dwayne Klassen, Commodity News Service Canada Inc.

Winnipeg – August 15/12 – Canola futures on the ICE Canada trading platform finished Wednesday’s session on a firmer footing with much of the upward price action associated with ideas that values needed a correction to the upside after experiencing a few days of losses, market watchers said.

Additional strength in canola was derived from the advances posted by CBOT soybean and soyoil values. The tight US and global soybean supply situation was also an underpinning price influence, traders said.

Light commercial pricing of canola, said to be the pricing of old export business, also contributed to the upward price action. Some light speculative based buying, tied to chart signals, further lifted canola values.

The upside in canola was restricted by the continued strength of the Canadian dollar against other foreign currencies, brokers said.

A pick up in elevator company hedge selling. spurred by ideas that farmer deliveries of canola into the cash pipeline will increase as the harvest progresses in western Canada, also tempered the upside price potential.

Some early position evening ahead of Statistics Canada’s first production report on August 22, was also a feature of the activity.

There were an estimated 9,675 canola contracts traded Wednesday, down from the 13,605 contracts that changed hands during the previous session. Of the contracts traded, 4,432 were spread related.

There were no milling wheat, durum or barley contracts traded.

Prices are in Canadian dollars per metric ton.