ICE Canadian canola futures fell on Wednesday on technical selling and renewed worries about exports to China amid geopolitical tensions, traders said. Beijing, embroiled in a major diplomatic dispute with Ottawa, has blocked canola imports from two major Canadian exporters. Canadian Agriculture Minister Marie-Claude Bibeau said on Tuesday a third company had received a Chinese notice of non-compliance. But comments by the Canadian minister were misunderstood, an agriculture ministry official said on Wednesday, adding that China had not escalated a dispute with Canada over the export of canola seeds.
Uncertainty over the matter pressured ICE canola futures, a trader said.
Benchmark May canola fell $3.30 to settle at $455.40 per tonne, halting a four-session advance.
July canola ended down $3.40 at $463.30 per tonne.
Traders were actively rolling short positions forward from the May to the July contract. The May-July canola spread traded 7,794 times between $7.70 and $8, premium July.
Chicago Board of Trade May soyabeans settled down 1-1/4 US cents at US$8.98-3/4 per bushel, weakening in a mild profit-taking setback despite optimism about a trade deal with China, traders said.
Paris Matif May rapeseed futures rose 0.1 percent and Malaysian June palm oil futures rose 1.0 percent. The Canadian dollar was little changed against its US counterpart as of 2:58 p.m. (1958 GMT), trading at $1.3336 to the US dollar, or 74.98 US cents.
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