Winnipeg, MB, Dec. 22, 2014

ICE Futures Canada canola contracts were higher on Monday, as chart-based buying and spillover from the advances in CBOT soybeans provided support.

Fund traders adding to long positions were a feature, as prices tested nearby resistance.

Weakness in the Canadian dollar contributed to the gains in canola. The Canadian currency traded below 86 US cents, which was supportive for crush margins and also makes exports more attractive.

On the other side, the strength in canola was thought to be encouraging some light farmer selling which did temper the advances. However, most producers remain on the sidelines for the time being as they await the New Year.

The relatively favourable South American crop prospects, large US soybean stocks, and continued weakness in crude oil put some pressure on canola values as well.

About 25,362 canola contracts were traded on Monday, which compares with Friday when 20,770 contracts changed hands. Spreading accounted for 13,378 of the contracts traded.

Milling wheat, durum, and barley were all untraded.

Settlement prices are in Canadian dollars per metric ton.

                          Price      Change
Canola            Jan     445.50    up 3.10
                  Mar     439.50    up 2.40
                  May     438.40    up 2.30
Milling Wheat     Mar     235.00    unch
                  May     238.00    unch
Durum             Mar     357.50    unch
                  May     357.50    unch
Barley            Mar     177.00    unch
                  May     179.00    unch
     Spread trade prices are in Canadian dollars and the
volume represents the number of spreads:
Months        Prices                      Volume
Canola
Jan/Mar       3.70 over to 6.40 over       4,100
Jan/May       6.50 over to 7.00 over          18
Jan/Nov       12.60 over                       5
Mar/May       0.50 over to 1.60 over       1,147
Mar/Jul       0.50 over to 2.10 over          37
Mar/Nov       8.40 over to 8.50 over           6
May/Jul       0.40 under to 1.10 over        921
Jul/Nov       5.70 over to 7.40 over         455

Phil Franz-Warkentin, Commodity News Service