By Dwayne Klassen, Commodity News Service Canada

Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 09:37 EDT Friday morning. Much of the upward price action in canola reflected the strength displayed by the outside oilseed sector, including CBOT soybeans, Malaysian palm oil and European rapeseed futures, market watchers said.

Helping to generate support in canola were the continued weather issues in the main growing areas of the US soybean belt.

Recent heat has trimmed canola yields in some areas, but overall fairly active showers across perhaps 60% to 65% of the Canadian Prairies have kept yield potential fairly good, brokers said.

The pricing of routine export business to Japan by commercials was helping to fuel some of the strength in canola. Commodity fund buying interest was also adding some support.

The upside in canola was expected to be tempered later in the day by the taking of profits ahead of the weekend, traders said. The unwillingness to hold positions over the weekend in case of major changes to the weather outlook both in Canada and the US, was also seen putting some constracts on the defensive.

The Canadian dollar was a bit firmer early Friday which was also tempering the upside in canola, traders said.

As of 9:37 EDT, there were 2,363 canola contracts traded.

As of 9:37 EDT, there were no milling wheat, durum or barley contracts traded.

Prices in Canadian dollars per metric ton at 9:37 EDT: