By Dwayne Klassen, Commodity News Service Canada Inc.

Winnipeg – July 198/12 – Canola futures on the ICE Canada trading platform finished Thursday’s session with advances. Strength in canola reflected the continued weather issues in the US soybean growing areas and the resulting upward push on those futures, market watchers said.

The upward price push in canola was aided by the overnight gains posted by Malaysian palm oil and European rapeseed futures, traders said.

Steady commercial demand, believed to be pricing old export business to Japan, helped to stimulate the price advances in canola. The surfacing of some commodity7 fund and speculative demand during the day, also provided canola with some support.

The buying back of previously sold positions aided the rally seen in canola.

The upside in canola was restricted by the taking of profits throughout the session by a variety of market participants. Elevator company hedge selling, tied to steady farmer deliveries of canola into the cash pipeline also tempered the upward price climb, brokers said.

The favourable weather for the development of the canola crops in western Canada further limited the upside price potential.

The upswing in the value of the Canadian dollar further capped the upward price action.

There were an estimated 18,691 canola contracts traded Thursday, up from the 14,908 contracts that changed hands during the previous session. Of the contracts traded, 10,853 were spread related.

There were no durum or milling wheat contracts traded during the session, however, values were increased by ICE Canada. There were no barley contracts traded.

Prices are in Canadian dollars per metric ton.