ICE Canada canola futures fell on Tuesday in a broad commodities selloff as investors booked profits from the past year, traders said. Nearby canola rose 43 percent in 2010, leaving it near 28-month highs. Losses in trend-setting soyabean and soyaoil futures on Tuesday and Monday, when canola market was closed, seen weighing down canola.
Commodities fell by their most in eight weeks after heady gains made on thin holiday volume over the past two weeks. Total canola volume of 10,100 contracts small compared to normal activity, but largest in three sessions as traders return from holidays.
Most-active March ended down $3.50 or 0.6 percent at $585.80, volume 7,634. January canola down $3 at $580.80, volume 135. Delivery taken of 81 January canola contracts-ICE. March-May spread traded 715 times, settling at $4.80, premium March. CBOT March soyabeans down 9-1/2 US cents at US $13.69-1/2 per bushel.
March soyaoil down 0.85 cent at 56.85 US cents per lb. Canadian dollar trading above parity, $0.9995 to the US currency or US $1.00 at 1:08 CST (1908 GMT), in line with Friday's finish at $0.9946 to the US dollar, or US $1.0054. NYMEX crude oil futures, linked to canola through use in biofuels, down US $2.38 at US $89.17 per barrel.