ICE Canadian canola futures dipped on Tuesday for the third straight session, touching their lowest price in a week on spillover pressure from weaker rapeseed and palm oil prices. Funds, who already hold a large net short position, were modest sellers based on weaker technicals - trader. January contract hit resistance on Monday at 50- and 40-day moving averages.

Lack of export business, due to farmers holding onto canola supplies and large palm oil stocks weighing on the global vegetable oil market, seen softening demand for canola. Trade expecting Statistics Canada to increase its canola production estimate on Wednesday to 13.7 million tonnes from 13.4 million. January canola lost $2.10 to $589.80 on volume of 6,155 contracts.

March canola shed $2.30 to $589.20 on volume of 4,543 contracts. January-March spread widened to a January premium of 60 cents, trading 3,199 times. Chicago January soybeans rose 1-3/4 US cents to US $14.55-1/2 per bushel on a late technical rally. Paris February rapeseed gave up 1.6 percent. Malaysian February palm oil dropped 1 percent, falling to its lowest level in more than three weeks on prospects of record high stocks.

Copyright Reuters, 2012