July 24 (Reuters) - ICE (NYSE:ICE) canola futures ended higher on Wednesday on concerns that a severe heat wave would reduce European rapeseed production this season, potentially stoking demand for Canadian exports, traders said.
* Temperatures across northern Europe hit record highs on Wednesday in the second heat wave this month. The crop-stressing conditions are expected to last until Friday. Most-active November canola RSX9 ended $2.70 higher at $450.20 per tonne. The contract touched a three-week high during the session.
* Hedge selling clipped gains late in the session as farmers seized the chance to liquidate some of their stored canola at higher prices and ahead of the upcoming harvest.
* Canola also drew some spillover support from soybean futures, which climbed on adverse U.S. crop development weather and hopes for revived trade talks between the United States and China.
* Spread trades totaling about 3,200 lots on the day were not a significant market driver on Wednesday.
* Chicago Board of Trade August soybeans SQ9 settled 5-1/4 U.S. cents higher at US$8.91 a bushel.
* Paris Matif November rapeseed futures COMX9 rose 1% and Malaysian October palm oil futures FCPOV9 gained 1.2%.
* The Canadian dollar CAD= weakened on Wednesday, holding near a one-month low against the U.S. dollar as investors awaited U.S. economic data that could help guide the Federal Reserve's interest rate decision next week. CAD/