(All figures in Canadian dollars unless noted)
March 7 (Reuters) - ICE (NYSE:ICE) May canola futures RSK9 closed higher on Thursday after setting contract lows earlier in the session amid ongoing concerns about China suspending imports from a top Canadian shipper of the grain, traders said.
* China confirmed on Thursday that it suspended the clearance of canola imports from Canadian agribusiness Richardson International and said customs will step up inspections of Canadian canola until further notice. Canada and China are locked in a dispute over trade and telecoms technology that has ensnared the chief financial officer of Huawei Technologies Ltd HWT.UL , the world's largest telecommunications equipment maker, who faces U.S. criminal charges.
* But short covering helped lift prices after recent declines, traders said. They added that the market was "oversold."
* "Prices bounced as carryover selling was thin," one Canadian trader said. "There wasn't any talk of fresh business."
* Most-active May canola RSK9 ended up $0.90 at $456.20 per tonne after dropping to $448.40, a contract low.
* July canola RSN9 rose $1.30 to settle at $465.00 after reaching a contract low at $456.90.
* Chicago May soybeans SK9 settled up a half U.S. cent at US $9.02-1/2 per bushel. Traders said Chinese state-owned firms bought at least 500,000 tonnes of U.S. soybeans.