By Dwayne Klassen, Commodity News Service Canada

Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at slightly higher price levels at 09:27 EDT Friday morning. The firmer price tone in CBOT soybean and soyoil futures provided much of the upward price momentum, market watchers said.

Activity in canola was described as extremely thin by market participants with it only taking a small amount of buying or selling to move values in either direction.

The evening up of positions ahead of the weekend and next week’s first crop production survey from Statistics Canada for the 2012/13 (Aug/Jul) season a feature of the activity.

Some additional support in canola came from steady commercial demand at the lows and from chart-based speculative buying interest, traders said.

Small overnight advances in Malaysian palm oil also contributed to the price strength in canola. EU rapeseed futures were little changed.

The upside in canola was being restricted by the advancing harvest operations across western Canada and elevator company hedge selling, tied to ideas that farmer deliveries of canola to the cash pipeline will increase over the next couple of weeks, brokers said.

The upside in canola was also being limited by the weather forecast for the US Midwest which is now cooler with a chance of showers for next 10 days.

As of 9:27 EDT, there were 175 canola contracts traded.

As of 9:27 EDT, there were no milling wheat, durum or barley contracts traded.

Prices in Canadian dollars per metric ton at 9:27 EDT: