ICE canola falls weighed down by weak soy prices

WINNIPEG: ICE Canada canola futures slipped on Wednesday a day after posting their biggest daily gain in 2-1/2 months, weighed down by weaker US soy prices, traders said.

Canola's losses were smaller than soy's, as farmer selling was light amid uncertainty about yields - trader.

Small speculator buying and lack of sellers seen supporting canola.

November canola futures slipped $1.50 or 0.3 percent to $565.20 per tonne on volume of 9,307 contracts.

January lost $1.60 to $573.60 on volume of 4,823.

November-January spread traded 3,277 times, settling at a January premium of $8.40.

Chicago August soybeans lost 9 US cents to US$13.64 per bushel. August soyoil fell 0.81 cent to 56.28 US cents per lb.

MATIF November rapeseed settled up slightly.

Canadian dollar was trading at $0.9634 to the US dollar, or US$1.0380 at 1:49 p.m. CDT (1849 CDT), down from C$0.9602 to the US dollar, or US$1.0414, at Tuesday's North American close.

NYMEX crude oil settled down 2 percent at US$91.93 per barrel on rising inventories and worries about demand.

Heat relief termed too late for US corn crop.

Copyright Reuters, 2011