By Dwayne Klassen, Commodity News Service Canada

Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 09:15 EDT Wednesday morning. Sentiment that canola was oversold and due for an upward correction after suffering significant losses over the past couple of sessions, helped to influence the price advances, market watchers said.

The price recovery in CBOT soybean and soyoil futures also played a role in the price gains experienced by canola, traders said.

While rains are in the outlook for the US Midwest, forecasters are not looking for a drought-breaking event. Although amounts are not enough to replenish soil moisture, it should reduce crop stress. There is some sentiment that

the worst of the US summer drought may be over, brokers said.

Gains overnight in Malaysian palm oil and European rapeseed futures also provided good support for canola values.

Bargain hunting by commercials also were helping to generate some support for canola, traders said. The commercial interest was said to be covering some nearby domestic crusher demand and old export business.

The upside in canola was being limited by the mainly favourable weather for the development of the crop in western Canada. Talk that the canola harvest in parts of Manitoba was underway also was an undermining price influence.

Farmer pricing of their canola crop, which was fairly active on Tuesday, also restricted the upside seen in canola, brokers said.

As of 9:15 EDT, there were 1,826 canola contracts traded.

As of 9:15 EDT, there were no milling wheat, durum or barley contracts traded.

Prices in Canadian dollars per metric ton at 9:15 EDT: