WINNIPEG, (Manitoba): ICE canola futures dropped on Monday to a nearly two-month low, pressured by weak export demand and falling soybean prices.

Some commercial dealers think China, a brisk buyer of Canadian canola earlier this year, may have covered its needs and that canola looks overpriced compared with other countries’ supplies, a trader said.

March canola lost $6.20 to settle at $806.70 per tonne, ending lower for the fourth straight session.

March canola slipped as low as $803.20, the weakest price of a most-active contract since Nov. 28. March-May canola spread, the most active inter-month spread, traded 2,937 times. Chicago soybean futures fell to their lowest in nearly two weeks as rainfall in Argentina’s parched growing areas diminished concerns over crop damage.

Euronext May rapeseed futures also tumbled. It has been pressured by large European Union imports and German plans to phase out crop-based biofuels.