By Dwayne Klassen, Commodity News Service Canada

Winnipeg – August 24/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:33 CDT

Friday morning. Strength in canola stemmed from steady demand from the domestic and export sectors as well as from the advances posted in CBOT soybean and soyoil values, market watchers said.

Gains overnight in Malaysian palm oil and European rapeseed futures contributed to the advances seen in canola.

The tighter than expected supply of canola in western Canada and tight global supplies of soybeans, also helped to keep a firm floor under canola, brokers said.

Some chart-based commodity fund and speculative buying was triggered early in the day, which amplified the price advances seen in canola, traders said.

The taking of profits at the highs of the day, trimmed some of the price gains in canola. The mostly favourable weather conditions for harvest activities in western Canada also tempered some of the price strength, brokers said. Light elevator company hedge selling, tied to anticipation of increased farmer deliveries of canola, also restricted some of the advances.

Spreading was a minor feature of the activity in canola, but contributed to the volume total.

As of 10:33 CDT, about 2,020 canola contracts had traded.

Milling wheat, durum and barley were untraded and unchanged.

Prices in Canadian dollars per metric ton at 10:33 CDT: