Winnipeg, MB, August 5, 2014

ICE Futures Canada canola contracts ended sharply higher on Tuesday, after the market rallied just before the close.

Canola was catching up with Monday's sharp gains in soybeans, as Canadian markets were closed, analysts said. Though, some downward pressure came from the weakness seen in soybeans and soyoil on Tuesday.

The sharp downswing in the value of the Canadian dollar, which dropped about a third of a cent against the US dollar, was bullish. The softer Canadian currency makes canola more attractive to crushers and foreign buyers.

A lack of significant farmer selling in Western Canada, as they wait for better prices and more confidence in their new crop was also supportive, as was strong demand for the commodity.

However, forecasts calling for better weather in Western Canada this week were bearish, as were ideas that the Canadian canola crop is looking bigger than it did a month ago.

About 18,538 contracts traded on Tuesday, which compares with Friday, when 15,862 contracts changed hands. Spreading was a large feature of the activity, accounting for 14,056 of the trades.

Milling wheat, durum and barley futures were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton.

                          Price      Change
Canola            Nov     439.30    up  5.00
                  Jan     444.40    up  6.00
                  Mar     445.30    up  6.20
Milling Wheat     Oct     188.00      unch
                  Dec     194.00      unch
Durum             Oct     250.00      unch
                  Dec     256.00      unch
Barley            Oct     136.50      unch
                  Dec     138.50      unch

Months        Prices                      Volume
Canola
Nov/Jan       5.50 under to 3.80 under     3,031
Nov/Mar       6.20 under to 4.10 under        58
Nov/May       2.70 under to 0.40 under        27
Nov/Jul       2.10 over to 4.50 over          42
Nov/Nov       11.10 over to 14.50 over        29
Jan/Mar       1.10 under to 0.30 under       829
Jan/May       2.60 over to 2.80 over         660
Jan/Jul       7.40 over                        1
Jan/Nov       16.20 over                     275
Mar/May       3.30 over to 4.00 over         390
May/Jul       4.00 over to 5.20 over         770
Jul/Nov       5.00 over to 12.90 over        916

Terryn Shiells, Commodity News Service Canada