WINNIPEG, (Manitoba): ICE canola futures dropped on Thursday as traders sold a crop that they said had become overvalued compared with rival oilseeds.

Speculator funds are also rebalancing their positions heading into the year-end, a broker said.

Most-active March canola lost $7 to $1,003.70 per tonne.

January-March canola spread traded 3,526 times.

Chicago Board of Trade soybean futures rose on concerns that dryness could trim production in crop-growing areas of South America. Euronext February rapeseed futures and Malaysian March palm oil futures both climbed. ICE canola trading will be closed on Friday and Monday for the holidays.