By Dwayne Klassen, Commodity News Service Canada

Winnipeg – September 12/12 – Canola futures on the ICE Canada trading platform finished Wednesday’s session on a firmer footing with smaller than anticipated US soybean supplies as revealed by the USDA behind much of the strength, market watchers said.

The subsequent rally experienced by CBOT soybean and soyoil futures helped to encourage the price advances in canola.

Additional support in canola was derived from aggressive Japanese pricing as well as steady domestic crusher demand, traders said.

A drop off in the amount of canola being delivered into the cash pipeline by farmers in western Canada further lifted values, brokers said.

Ongoing concerns about lower than anticipated yield potential as the canola harvest continues on the Canadian prairies also generated some support.

The triggering of buy-stop orders on the way up helped to amplify the upward price action.

The gains were restricted by the taking of profits at the highs of the day. The general firmness of the Canadian dollar and the favourable weather for harvest operations also limited the upside price potential, traders said.

There were an estimated 13,999 canola contracts traded Wednesday, up from the 8,375 contracts that changed hands during the previous session. Of the contracts traded, 5,456 were spread related.

There were 9 milling wheat contracts traded with commercials the main participants, brokers said.

Durum contracts were untraded and unchanged.

The December barley future saw 25 contracts change hands during the session.

Prices are in Canadian dollars per metric ton.