By Dwayne Klassen, Commodity News Service Canada Inc

Winnipeg – February 3/12 – Canola contracts on the ICE Futures Canada platform were trading at steady to higher price levels at midday Friday with support stemming from the advances posted by the CBOT soybean complex, market watchers said.

Early support in canola also came from the advances experienced overnight in Malaysian palm oil and European rapeseed values, brokers said.

The buying back of previously sold positions was an underpinning price influence. Steady demand from domestic crushers and the pricing of routine export business to Japan by commercial accounts further generated price strength, traders said.

There were indications that some fresh export demand for Canadian canola was being conducted, but confirmation was not available.

Stocks of Canadian canola on farm and in commercial positions as of December 31, 2011, were pegged at 9.294 million metric tons by Statistics Canada Friday morning.

That’s down slightly from 9.434 million at the same point the previous year. With Canada starting the year with a much larger crop to begin with, the confirmation of solid end-user demand was seen as supportive. However, market participants said the tightening supplies were already priced into the futures.

The upside in canola was being restricted by profit-taking at the highs as well as by the strong Canadian dollar, which continues to trade above parity with the US currency, traders said.

Spreading was again a big feature of the volume total in canola.

There were an estimated 19,798 canola contracts traded at 10:43 CST. Of the contracts traded, 17,748 were spread related.

There were no western barley, milling wheat, durum or new barley contracts traded as of 10:43 CST.

Prices in Canadian dollars per metric ton at 10:43 CST: