Analysts said traders and industry are starting to take the canola problem areas in Canada’s grainbelt more seriously. As the realization of unseeded acreage becomes clearer to investors they become more uncertain, therefore become more active within the market.

The CWB announced a total unseeded acreage between 8 million to 12 million acres across Canada, and were reluctant to estimate a percentage of canola acres. An estimated 36% of Saskatchewan will go unseeded, a major part of Canada’s canola production. The weather conditions are the underpinning factor that is keeping the canola market in positive territory, market watchers said. Adding to the strength in canola was light fund buying as well as light export and crusher demand. Strength in CBOT soybean and soyoil values contributed to the upward price action seen in canola.

An analyst said there was no significant amount of farmer selling, and the canola trade won’t see any until there is a better understanding of the amount of acres lost. Some minor support also came from news China has extended canola seed imports from Canada for another year. In 2009, China implemented restrictions on Canadian canola seed positive for blackleg. China kept a few ports open to import the Canadian crop and will continue to do so through 2010.

There was little resistance against canola futures moving upwards, with the exception being the firm Canadian dollar, brokers said. There were an estimated 11,602 canola contracts traded at 10:15 am CDT. There was 5 western barley futures traded as of 10:15 am CDT. Interest from feedlots in the cash market, resulted in the activity seen in western barley, brokers said.

Prices in Canadian dollars per metric ton at 10:15 am CDT: