Winnipeg, MB, August 1, 2014

ICE Futures Canada canola contracts ended sharply lower, as traders liquidated positions ahead of the long weekend. Canadian markets are closed on Monday, August 4 for a Civic Holiday.

Much of the weakness was linked to spillover pressure from the declines seen in the Chicago soy complex and European rapeseed futures, analysts said.

CWB's estimate calling for an average western Canadian canola yield of 34.3 bushels an acre was also bearish, as it was in line with the long-term average despite problems with excess moisture in some regions, and excess dryness in others this year.

Ongoing expectations of a very large 2014/15 US soybean crop also weighed on values.

However, weakness in the value of the Canadian dollar tempered the losses, as it made canola more attractive to crushers and foreign buyers.

Slow farmer selling, as they wait for better prices and more confidence in their new crop, was also supportive.

About 15,862 contracts traded on Friday, which compares with Thursday, when 10,437 contracts changed hands. Spreading accounted for 8,778 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     434.30    dn  7.00
                  Jan     438.40    dn  7.00
                  Mar     439.10    dn  6.90
Milling Wheat     Oct     188.00      unch
                  Dec     194.00      unch
Durum             Oct     250.00      unch
                  Dec     256.00      unch
Barley            Oct     137.50      unch
                  Dec     139.50      unch

Months        Prices                      Volume
Canola
Nov/Jan       4.40 under to 3.70 under     1,755
Nov/Mar       4.30 under to 4.00 under        12
Jan/Mar       0.50 under to 0.10 under     1,333
Mar/May       3.70 over to 3.90 over         501
May/Jul       4.20 over to 4.70 over         173
Jul/Nov       11.50 over to 13.60 over       615

Commodity News Service Canada