ICE canola slips amid grains selloff, ends week higher

All figures in Canadian dollars unless noted

WINNIPEG, Manitoba, Jan 3 (Reuters) - ICE canola futures dropped in Friday trading but were helped by a weaker Canadian dollar to avoid bigger losses like those in Chicago crops futures, rising 1.1% for the week on the March contract.

* Most-traded March futures RSH5 fell a dollar to $624 per metric ton. May RSK5 fell $3.80 to $628.70.

* Funds have been closing some short positions in the last two days, providing a bullish short-term impact, traders said. Canola is still felt by traders to be in short physical supply on Canadian farms, so the expected annual increase in deliveries in early January will be closely watched for signs of how much is really out there, they said.

* Chicago Board of Trade soyoil futures BOcv1 fell 0.84% to close beneath 40 U.S. cents per pound for the first time since Dec. 26. Chicago's corn Cv1, soybeans Sv1 and wheat Wv1 all closed sharply lower on heavy farmer selling and a stronger U.S. dollar.

* A strong greenback tends to help firm canola futures, since they are listed in loonies.

(Reporting by Ed White; Editing by Mohammed Safi Shamsi)

((ed.white@thomsonreuters.com;))