By Terryn Shiells, Commodity News Service Canada

December 28, 2012

WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at mostly stronger price levels at 8:41 CST Friday, following the advances seen in outside oilseed markets.

Malaysian palm oil futures were higher overnight, underpinned by concerns that flooding could potentially harm crops in the country’s most productive region.

Advances seen in European rapeseed also spilled over to help canola values move to higher ground.

The CBOT soybean complex was also trading at a firmer level, which helped to support canola as well. Much of the strength in the CBOT soybean complex was linked to bargain buying following recent declines, analysts said.

Concerns about tight nearby canola supplies in western Canada also added to the bullish price sentiment, market watchers said.

However, reports that weather has been beneficial for the expected record large soybean crop in South America, limited the advances.

As of 8:41 CST Friday, about 2,492 canola contracts had traded. Much of the activity was said to be spreading, as traders rolled out of the nearby January contract.

Milling wheat, barley and durum were untraded and unchanged.

Prices in Canadian dollars per metric ton at 8:41 CST: