By Dwayne Klassen, Commodity News Service Canada Inc

Winnipeg – August 15/12 – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at midday Wednesday. Much of the support was stemming from sentiment that the recent declines experienced by canola were overdone and that a correction to the upside was needed, market watchers said.

“It’s really a correction day,” a broker said, explaining the upturn in canola values.

Strength in CBOT soybean futures were contributing to the advances in canola with the buying back of previously sold positions also adding to the friendly price tone, traders said.

The pricing of old export business to Japan by commercials helped to underpin canola as well. Light speculative buying was also evident and helped to generate support.

The upside in canola was tempered by the firmness of the Canadian dollar and by elevator company hedge selling, tied to ideas that farmer deliveries of canola will intensify as the harvest season continues.

The absence of significant domestic processor demand for canola also restricted the upside in canola, brokers said.

There were an estimated 6,077 canola contracts traded at 10:42 CDT.

There were no milling wheat, barley or durum contracts traded at 10:42 CDT.

Prices in Canadian dollars per metric ton at 10:42 CDT: