ICE canola futures drop for third day as US-China talks end without deal

WINNIPEG: ICE canola futures dropped on Wednesday for the third straight day, in sympathy with soybeans after US and Chinese negotiators wrapped up trade talks without a deal.

* Negotiators put off their next meeting until September, extending an uneasy truce between the world's two largest economies.

* Expectations for a decent Canadian canola crop overhang prices, but a slow pace of farmer selling has underpinned the market, a trader said. A large fund short position raises potential for future buying to cover that position and lift prices, the trader said.

* November canola lost $4.90 to $443.50 per tonne.

* November-January canola spread traded 1,198 times.

* Chicago August soybeans slipped on diminishing hopes for a US-China trade deal.

* Paris Matif November rapeseed futures finished unchanged and Malaysian October palm oil futures rose.

* The Canadian dollar strengthened against its US counterpart, ahead of a Federal Reserve interest rate decision, as domestic data showed that gross domestic product grew more than expected in May.