By Dwayne Klassen, Commodity News Service Canada

Winnipeg – October 31/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at higher price levels at 10:25 CDT Wednesday morning with much of the upward price momentum linked to the rally seen in the CBOT soybean complex, market watchers said.

Chart based speculative and commodity fund buying was also evident and helped to facilitate the rise in canola futures, brokers said.

Some early support in canola was drawn from the advances posted overnight by Malaysian palm oil and European rapeseed futures.

Light commercial demand, believed to be pricing old export business, also provided a firm floor for canola, traders said.

Relatively light farmer deliveries of canola in the cash market also aided the price rally in the commodity.

The upside in canola was restricted by bouts of profit-taking. A decline in domestic crusher demand also limited some of the upward price potential.

As of 10:25 CDT, about 4,296 canola contracts had traded. Of those contracts, spreading accounted for 1,630 of the trades.

Milling wheat, durum and barley contracts were unchanged and untraded.

Prices in Canadian dollars per metric ton at 10:25 CDT: