July 31 (Reuters) - ICE Canada canola futures 0#RS: rose to a two-week high on Tuesday, boosted by surging prices for the competing oilseed of soybeans 0#S: , traders said.
* Canola futures gained over 1 percent, compared with soybean gains of more than 3 percent. A media report stated that officials from China and the United States were holding new trade talks, forcing traders to cover short positions in soy and canola amid hopes the U.S.-China trade war could end. GRA/
* November canola RSX8 gained $7 to $500.80 per tonne, highest since July 11.
* Traded volume in all canola contracts of over 12,000 contracts was about double Monday's session.
* The November-January canola spread traded 1,659 times.
* November Paris Matif rapeseed futures COMX8 and Malaysian October crude palm oil 1FCPOV8 each were higher.
* The Canadian dollar CAD= was trading at $1.3001 to the U.S. dollar, or 76.90 U.S. cents, at 2:54 p.m. CDT (1954 GMT).