ICE Canola Follows CBOT Soybeans Up

Activity was described as choppy with position evening ahead of the weekend a feature. The November, January and March contracts were the contracts currently being traded.

Gains overnight in the outside oilseed markets, including global crude oil, helped to influence some upward price action in canola, brokers said.

Canola futures also received a small price boost from the lower than expected crop production estimate from Statistics Canada early Friday morning.

Statistics Canada pegged 2009/10 canola production in Canada at 9.541 million metric tons. This compares with pre-report ideas that ranged from 9.500 million to 10.750 million tons and the 2008/09 level of 12.642 million.

The advances in canola were augmented with the start of the North American day session, especially as CBOT soybeans and soyoil opened with significant gains, traders said.

The rally in canola was being slowed by the absence of fresh export demand.

Sentiment that canola production in Canada will be increased in future reports from the government agency also limited the upside price potential.

The gains in canola were also being restricted by the heavy world oilseed balance sheet, brokers said.

"While Canada’s canola crop may be on the smaller side, there is still plenty of regions in which oilseed output will be up significantly," an analyst said.

Strength in the Canadian dollar was also tempering the upside price potential in canola.

There were an estimated 2,657 canola contracts traded at 10:32 CDT.

There were 26 western barley futures traded as of 10:32 CDT. Concerns about tight supplies of barley sparked some minor commercial demand, brokers said.

Prices in Canadian dollars per metric ton at 10:32 am CDT: