WINNIPEG, Manitoba, March 14 (Reuters) - ICE Canada canola futures dipped on Wednesday, following soyoil lower.
* Canola futures are technically strong, but may be due for a large drop if soybean crop conditions improve in Argentina, a trader said.
* Hope has withered for recovery in Argentine soy yields hit by a four-month drought. May canola RSK8 shed $2.50 to $518.40 per tonne.
* The May-July canola spread traded 2,068 times.
* Chicago May soybeans SK8 plunged on technical selling and outlooks for big U.S. plantings. NYSE MATIF May rapeseed COMK8 ended flat and Malaysian May crude palm oil 1FCPOK8 gained.
* The Canadian dollar CAD= was trading at $1.2936 to the U.S. dollar, or 77.30 U.S. cents, at 1:16 p.m. CDT (1816 GMT).