ICE Canadian canola futures dropped on Tuesday to a 2-1/2 month low, pressured by improving soybean crop prospects in South America, which also weakened US soy prices. After brisk liquidation of long positions last week, canola may now be oversold and due for a bounce, a trader said. March canola gave up $3.90 at $500.10 per tonne dipped as low as $499.50, the lowest most active price since mid-October. March-May canola traded 2,325 times.