ICE canola futures slump on technicals, weakness across vegoils

WINNIPEG, Manitoba, July 9 (Reuters) - ICE canola futures fell more than 3% on Wednesday as technical selling compounded weakness in vegoils to trigger the biggest decline in canola for almost two months.

• November canola RSX5 settled down $23.01 at $681.09 per metric ton. Following months were also hit hard.

• Canola prices have followed the lead of other vegoils, but the crop is now seen as overvalued after Statistics Canada raised its canola production estimate recently, some traders said.

• Canola has broken through a number of moving averages since Friday, prompting some technical traders and funds to sell, a trader said.

• The negative mood towards canola prices has been exacerbated by recent rainfall in Western Canada, which is continuing this week.

• Chicago Board of Trade soyoil futures BOv1 fell 1.35%, as disappointment about the U.S. failing to announce a trade deal with China added to worries about other trading partners reducing purchases from the U.S. due to trade hostilities.

• Euronext August rapeseed futures COMQ5 fell 1.55%.

• Malaysian palm oil futures FCPOc3 rose 0.22% Wednesday but were falling in Thursday trading, in sympathy with the Chicago complex. POI/

• The Canadian dollar CAD= weakened as the greenback strengthened. CAD/