CHICAGO: ICE canola futures fell for the first time in three sessions on Monday on selling by funds and commercial hedgers and spillover pressure from a lower soybean market, traders said.

* Beneficial rains over the past two to three weeks have boosted crop yield potential and capped the market's upside potential. More high temperatures are in the forecast, however, for parts of Alberta.

* The market retreated from early gains as soybeans extended losses, more than offsetting early support from fund short covering and a weakening Canadian dollar.

* Most-active November canola ended $2.60 lower at $447.00.

* The contract failed to hold gains above its 20-day moving average, a key technical point, and ultimately settled near its 10-day moving average.

* Chicago Board of Trade August soybeans fell 13-1/4 US cents to US$8.88-1/4 a bushel, as recent reports of Chinese buying of US agricultural goods failed to materialize over the weekend.

* Paris Matif August rapeseed futures rose 0.1%, while Malaysian September palm oil futures gained 0.56%.

* The Canadian dollar fell to a near two-week low against the US dollar on Monday as domestic data showed a surprise drop in May wholesale trade, supporting ideas that the Bank of Canada may cut interest rates this year.