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WINNIPEG, (Manitoba): ICE canola futures sagged on Tuesday, pressured by weaker European rapeseed prices and sufficient Canadian supplies.

Canadian farmers have started to sell more of their stored canola, weakening prices, a trader said, adding that declining crush margins have also dampened demand. May canola lost $4.70 to settle at $769.30 per tonne. May-July canola spread, the most active inter-month spread, traded 6,273 times.

Global crop trader Louis Dreyfus Corp said it will more than double the size of its Canadian canola crushing plant, the latest North American oilseed processor to expand. Chicago soybean futures climbed as markets reacted to smaller US government crop forecasts for Argentina’s soy and corn production.

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