By Dwayne Klassen, Commodity News Service Canada Inc.

Winnipeg – June 22/12 – Canola futures on the ICE Canada trading platform finished the session on the defensive Friday after starting the day off with good gains. Support in canola for a good part of the session had stemmed from the weather issues in the US and the advances in CBOT soybeans, market watchers said.

However, soybeans were unable to maintain the early strength and had given back of lot of the advances by its close.

Early support in canola had also stemmed from steady domestic processor demand and the pricing of routine export business to Japan by commercials.

Gains overnight in Malaysian palm oil and Matif rapeseed values had also generated some support for canola.

Some minor commodity fund buying was also evident earlier in the day, which helped to underpin values, brokers said.

Some of the late-day pull-back in canola was also associated with profit-taking and the liquidation of positions ahead of the weekend, traders said.

The improved growing conditions on the Canadian prairies for canola also influenced some selling during the day.

The general firmness of the Canadian dollar and a pick up in elevator company hedge selling, spurred on by an increase in farmer deliveries of canola into the cash pipeline also weighed on values, brokers said.

Spreading was again a feature of the trade in canola. Some evening up of positions ahead of the weekend and the June 27 planting intentions report from Statistics Canada was also evident, traders said.

There were an estimated 19,559 canola contracts traded Friday, down from the 23,795 contracts that changed hands during the previous session. Of the contracts traded, 13,428 were spread related.

There were no barley or durum contracts traded during the session. However, 10 milling wheat contracts changed hands between commercials.

Prices are in Canadian dollars per metric ton.