By Dwayne Klassen, Commodity News Service Canada

Winnipeg – September 13/12 – Canola futures on the ICE Canada trading platform ended Thursday’s session with small to modest gains. Strength in canola stemmed from concerns about yield loss due to weather issues with steady demand from end-users contributing to the upward price action, market watchers said.

Disappointing yield results from the ongoing canola harvest in western Canada fueled some of the upward price climb. Extremely strong winds over the past couple of days, which are believed to have further added to the yield loss seen in canola, also provided good support, traders said.

Much of the demand came from commercials, who were said to be covering old export business to Japan as well as domestic crusher needs.

The upturn in CBOT soybean futures and the strength displayed by CBOT soyoil throughout the session contributed to the firm price tone seen in canola.

Some of the price gains in the November canola future was technical in nature, especially as the contract penetrated strong resistance at the C$645 per metric ton level, traders said.

Tight global oilseed supplies also provided a firm floor for canola futures to work with, brokers said.

The upside in canola was restrict6ed in part by the continued upswing in the value of the Canadian dollar. The taking of profits at the highs of the day also capped the upside price potential.

Light elevator company hedge selling, tied to sentiment that farmers will take advantage of the recent hike in values to deliver canola into the cash pipeline, also tempered some of the price strength, brokers said.

There were an estimated 12,626 canola contracts traded Thursday, down from the 13,999 contracts that changed hands during the previous session. Of the contracts traded, 7,950 were spread related.

There were 4 milling wheat contracts traded with commercials the main participants, brokers said.

Durum and barley contracts were untraded and unchanged.

Prices are in Canadian dollars per metric ton.