By Dwayne Klassen, Commodity News Service Canada

Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at firmer price levels at 09:27 EDT Thursday morning. Much of the upward price action in canola was associated with the advances seen in the outside oilseed sector, market watchers said.

Gains were seen overnight in Malaysian palm oil and European rapeseed futures. CBOT soybean and soyoil values were also experiencing advances this morning.

The modestly positive pre-USDA report tone emanating from US ag markets, contributed to the price strength, brokers said.

Activity in canola was described as choppy with participants reluctant to push prices too far in either direction as anxiety builds 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.

Some support in canola was also stemming from light commercial demand, said to be covering both domestic crusher needs as well as old export business.

The upside in canola was being restricted by indications that Canadian canola was too expensive on the global market, with Australia said to be offering canola at a less expensive level, brokers said.

The quick development of the canola crop in western Canada and the advancing harvest operations were also helping to temper the price gains in the commodity, traders said.

The continued firmness of the Canadian dollar, which continued to trade above parity with its US counterpart Thursday morning, also limited the upside price potential.

As of 9:25 EDT, there were 1,953 canola contracts traded.

As of 9:25 EDT, there were no milling wheat, durum or barley contracts traded.

Prices in Canadian dollars per metric ton at 9:25 EDT: