ICE Canadian canola futures fell on Wednesday for the fourth straight session, after a US regulatory decision made it easier for Argentina biofuel makers to sell output into the United States, triggering a plunge in soyoil prices. US regulators on Tuesday gave the go-ahead for Argentine biofuel makers to qualify for US biofuel credits, potentially making it more attractive for South American exporters to sell into the US market.
With funds already holding a large long position in canola, the market is seen with limited upside, an analyst said. March canola fell $9.80 to $449.80 per tonne. May canola dropped $9.70 to $445.40 per tonne. March-May spread traded 4,729 times. Chicago Board of Trade March soybeans lost 3-1/2 US cents to US $9.70-1/4 per bushel. March soyoil dropped 2.7 percent. Malaysian April palm oil gained 1.5 percent. NYSE Liffe Paris May rapeseed shades 2.3 percent. The Canadian dollar CAD= was trading at $1.2450, or 80.32 US cents at 12:46 pm CST (1846 GMT), down from Tuesday's close of $1.2404, or 80.62 US cents.