By Dwayne Klassen, Commodity News Service Canada

Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 09:16 EDT Friday morning with profit-taking after recent strong gains associated with the downward price slide, market watchers said. Some of the profit-taking also came ahead of the weekend.

The liquidation of canola contracts came despite the fact that the hot and dry weather in the US Midwest continues. Participants noted that some rain will occur across the US Midwest with the onset of cooler air this weekend into early next week, but the amount of rain that falls will stay lighter than that needed to induce a serious change in crop moisture and plant development.

Losses in CBOT soybean and soyoil futures contributed to the price weakness in canola as did the sell-off experienced in Malaysian palm oil and European rapeseed futures overnight.

Some of the bearish price sentiment in canola also reflected the weaker tone of outside equity and commodity markets this morning due to lingering macro-economic worries.

The downward price action in canola was being slowed by scale-down commercial buying, believed to be covering old export business as well as domestic crusher requirements, brokers said.

Weakness in the Canadian dollar early Friday was also helping to underpin canola values.

As of 9:16 EDT, there were 974 canola contracts traded.

As of 9:16 EDT, there were no milling wheat, durum or barley contracts traded.

Prices in Canadian dollars per metric ton at 9:16 EDT: