By Dwayne Klassen, Commodity News Service Canada

Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to mostly lower price levels at 9:26 EST. Steady farmer deliveries of canola into the cash pipeline and resulting elevator company hedge selling accounted for some of the early declines, market watchers said. The taking of profits after the gains seen on Thursday, also added to the bearish price sentiment.

Activity was described as cautious with market participants uncertain as to the positions they want to hold heading into the weekend, traders said. Some of the uncertainty was tied to the mixed e-CBOT soybean futures overnight.

Uncertainty surrounding the South American soy crop was also making traders nervous. The odds still favour large soybean production down there, but hot and dry conditions in Argentina this weekend were being closely monitored.

The lower calls for CBOT soybean futures with the start of the North American day session were viewed as an undermining price influence for canola.

Overhead technical resistance was also seen keeping canola futures on the defensive, brokers said.

Underlying support in canola continues to come from steady processor demand, with crush margins remaining fairly profitable, traders said. The pricing of old export business by commercials was also seen keeping a firm floor under canola values.

As of 9:26 EST, there were 2,495 canola contracts traded.

As of 9:26 EST, no western barley, milling wheat, durum or barley contracts had been traded.

Prices in Canadian dollars per metric ton at 9:26 EST: