WINNIPEG (Dow Jones)--Grain and oilseed futures at the ICE Canada Futures
market were lower at 9:48 a.m. EDT Friday, with canola undermined by a weak
tone in vegetable oil markets, traders said.

  Canola saw a light trade as an estimated 931 contracts had traded.

  Canola was lower in the overnight market as international vegetable oil
prices posted losses and the e-cbot soybean market declined, traders said.
Canola is expected to continue to see losses as the North American trading gets
underway, with the Chicago Board of Trade soy complex expected to be lower,
traders said.

  Canola is also under pressure from the firm tone in the Canadian dollar and
bearish technical signals with Thursday's chart performance described by
traders as "disappointing."

  Evening up ahead of the weekend and the overall favorable growing conditions
in Manitoba and Saskatchewan are weighing on the market as well. Farmer selling
has also seen a slight increase out of Manitoba and Saskatchewan as farmers are
becoming more comfortable with the idea that their crop will make it through.
However, cash dealers note that the overall bullishness among farmers is
keeping the overall selling pace slow, despite this week's small increase.

  Underpinning the market was continued strong demand, with traders noting the
rising open interest as a sign that commercials are adding to their long
positions in the market.

  Weather concerns also are supportive as frost appeared in the Peace River
area overnight. Traders feel it didn't significantly affect the crop, but they
note it is an indication that the crop is vulnerable this year and temperatures
are well below normal. Single-digit lows are forecast in many locations in
Alberta this weekend, they added.

  Commercials were the main traders in the small overnight trade, with some
European selling noted.

  Western barley is untraded and unchanged, with the market expected to be
under pressure from ideas that feed supplies will be large this winter even if
barley production is smaller than normal, brokers said. They also noted that
the November contract is "reasonably" in line with the cash market right now.

   Prices at 9:47 a.m. EDT in Canadian dollars per metric ton:

             Prices    Change
Canola
   Nov       434.50    dn 5.50
   Jan       438.90    dn 6.10
   Mar       441.70    dn 6.70
Western Barley
   Oct       144.90    unch
   Nov       165.00    unch