Grain and oilseed futures at the ICE Canada futures market at 12:10 p.m. EDT were lower with canola undermined by the weak tone in Chicago Board of Trade soy complex futures, brokers said.

 

Canola saw a light to moderate trade with an estimated 7,475 contracts traded as of 12:10 p.m. EDT. Limiting activity was Thursday's Statistics Canada crop production report, said brokers.

 

Canola posted losses early Wednesday in the wake of the declines in the CBOT soy complex with sluggish demand contributing to the weakness, traders said. Expectations for large canola production in Thursday's StatsCan production report also weighed on the market.

 

The market is also looking to Prime Minister Stephen Harper's visit to China this week to resolve a dispute between Canada and China over Canadian exports of canola. "That is front and centre on everyone's mind and we are told it is front and centre for the prime minister too," said a trader.

 

Canola's losses have been smaller than the US soy complex as the lack of farmer selling is giving support. "We have definitely entered the Christmas lull as far as farmer selling goes," said a cash dealer. "We won't see any significant selling, except for delivery contracts, until after the New Year," he added.

 

Also supporting canola has been improved crush margins as crushers have been steady buyers. "It's costing them (crushers) more but they are still moving (canola) meal and its going to Asia", said a trade source. Salmonella contamination of canola meal exports to the US has halted the movement of Canadian canola meal to US destinations, said exporters.

 

Crushers were the best buyers with routine exporter demand giving support. Commercials were the main sellers.

 

Western barley was untraded and unchanged.

 

Prices at 12:20 EDT in Canadian dollars per tonne:
　	Prices	Change
Canola	　	　
Jan	409.90	Down 3.70
March	416.20	Down 4.20
May	420.80	Down 5.30
Western Barley	　	　
Jan	160.50	Unchanged
March	162.00	Unchanged