ICE Canadian canola futures dropped on Thursday, as speculators sold because of weak technicals and lower US soybean prices while farmer cash selling brought in commercial hedge pressure, traders said. Crusher buying seen light with margins declining recently. Trend-following funds seen as sellers with most-active May closing under 100-day moving average for third straight day. Rise to $585-$590 seen needed for fund long liquidation to stop - trader.
Market open interest as of Tuesday was less than 204,000 contracts, lowest in six weeks as speculators liquidated long positions in past week. March ended down $6.60 or 1.2 percent at $565.40 on volume of 4,468 contracts. May down $6.30 at $574.20, volume 12,713. March-May spread traded 4,206 times, settling at $8.80, premium May.
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