By Dwayne Klassen, Commodity News Service Canada Inc

Winnipeg – August 9/12 – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midday Thursday. Much of the upward price action was linked to the strength displayed by the outside oilseed markets, industry watchers said.

CBOT soybean and soyoil futures were posting significance advances at midday with gains also seen overnight in Malaysian palm oil and European rapeseed futures.

Some of the activity in canola has consisted of position evening ahead of Friday morning’s USDA supply/demand. The report will give the first in-field estimate of US corn and soybean production for 2012, and is seen as one of the most important reports of the year.

The buying back of previously sold positions helped to influence some of the price gains in canola. Steady commercial demand, said to be covering domestic crusher needs and some old export business, further underpinned canola, brokers said.

The upside in canola was being capped by elevator company hedge selling, which was inspired by the increased delivery of old crop canola into the cash pipeline, traders said.

The absence of fresh export business being put on the books, also hampered the upside price potential.

Firmness in the Canadian dollar was also restricting the price strength in canola, traders said.

There were an estimated 6,749 canola contracts traded at 10:45 CDT.

There were no milling wheat, barley or durum contracts traded at 10:45 CDT.

Prices in Canadian dollars per metric ton at 10:45 CDT: