Winnipeg, MB, Nov. 5, 2014

ICE Futures Canada canola market settled higher on Wednesday, recovering from early declines as good commercial demand and a lack of farmer selling provided support.

Speculators holding short positions were also being squeezed out, and forced to buy some of those positions back amid the lack of farmer selling, said an analyst.

The record large US soybean crop and favourable weather conditions for soybeans in South America contributed to some of the early weakness in canola, according to participants.

However, the market turned higher with the biggest gains in the front months. The strength in the nearby's was tied in part to commercial demand, with exporters and domestic crushers being forced to pay up in order to encourage reluctant farmers to make some sales. An eventual turn higher CBOT soybeans was also supportive for canola.

About 20,239 canola contracts were traded on Wednesday, which compares with Tuesday when 18,673 contracts changed hands. Spreading accounted for about 11,158 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     434.80    up 3.70
                  Mar     430.90    up 1.80
                  May     430.80    up 1.40
Milling Wheat     Dec     222.00    unch
                  Mar     228.00    unch
Durum             Dec     356.50    unch
                  Mar     357.50    unch
Barley            Dec     140.00    unch
                  Mar     143.00    unch
    Spread trade prices are in Canadian dollars and the volume
represents the number of spreads:
Months        Prices                      Volume
Canola
Nov/Jan       16.00 over to 16.20 over        25
Jan/Mar       1.10 over to 4.90 over        3164
Jan/May       2.00 over to 4.00 over         511
Jan/Jul       3.70 over to 7.50 over         207
Jan/Nov       9.10 over to 9.40 over           2
Mar/May       0.90 under to 0.40 over        908
Mar/Jul       0.50 over to 1.80 over          44
May/Jul       0.10 over to 3.40 over         680
May/Nov       5.40 over                        1
Jul/Nov       2.00 over to 4.40 over          36
Nov/Jan       8.00 under                       1

Commodity News Service