By Dwayne Klassen, Commodity News Service Canada

Winnipeg – October 17/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at firmer levels in light, choppy early morning trade. Carryover buying from the advances seen on Tuesday helped to fuel some of the upward price action, market watchers said.

Gains in CBOT soybean and soyoil futures Wednesday also helped to generate some of the strength seen in canola.

Continued worries about tight supplies of canola also bolstered values.

Light speculative and commercial buying interest, tied to he establishing of fresh long positions, was also helping to push canola futures higher, brokers said.

The upside in canola was tempered bu the upswing in the value of the Canadian dollar. Small declines were posted in Malaysian palm oil and European rapeseed futures overnight, which also restricted some of the upward action in canola.

Relatively good weather conditions for the South American soybean growing regions and continued indications of better than anicipated US soybean yields further tempered the buying interest in canola, traders said.

As of 8:38 CDT, about 538 canola contracts had traded.

Milling wheat, durum and barley contracts were unchanged and untraded.

Prices in Canadian dollars per metric ton at 8:38 CDT: