ICE canola ends lower on harvest pressure, fund liquidation

Aug 29 (Reuters) - ICE canola futures fell to their lowest in nearly five months on Friday, pressured by fund-driven long liquidation and the start of what is expected to be a large Canadian harvest of the oilseed, traders said.

• Benchmark November canola RSX5 settled down $9.30 at $626.40 per metric ton after hitting $621.70, the contract's lowest since April 7.

• January canola RSF6 ended down $9.90 at $638.30 a ton.

• The November-January canola spread firmed, with the November contract RSX5 narrowing its discount to the January RSF6 contract to $11.90, from $12.50 on Thursday.

• Strong crush margins encouraged buying by commercial crushers, but that demand was not enough to offset pressure from the bearish supply outlook, one broker said.

• Combines are starting to roll in portions of the Canadian Prairies. The canola harvest is 0.4% complete in Alberta, the province said in a weekly crop report. GRO/ALB

• In Saskatchewan, the harvest of all crops was about 12% complete, but farmers were focusing on winter cereal and pulse crops, a government crop report said. GRO/SAS

• Rival global vegetable oil prices declined. Benchmark Chicago Board of Trade December soyoil BOZ25 settled down 0.29 U.S. cent, or 0.55%, at 52.14 U.S. cents per pound.

• Euronext November rapeseed futures COMX5 fell 0.64% and Malaysian palm oil futures FCPOc3 ended down 1.55%. POI/

• Canadian and U.S. markets will be closed on Monday, September 1, for the Labor Day holiday.