ICE canola futures bounce from lows on technicals, short covering
All figures in Canadian dollars unless noted
Aug 19 (Reuters) -ICE canola futures rallied from early-session contract lows on Monday to finish higher as technical buying, short covering and exporter pricing lifted the market, traders said.
Canola rose despite supply pressure from the new-crop harvest and concerns that a Canadian railroad stoppage would disrupt movement of crop to domestic users and to export outlets. The market appeared to be banking on government intervention to keep trains running, traders said.
The Canadian government told the two main railway companies and the Teamsters union to work harder to reach labor deals. Unless agreements are reached, both Canadian National Railway CNR.TO and Canadian Pacific Kansas City CP.TO will shut down at the same time on Thursday for the first time ever.
November canola RSX4 touched a contract low of $561.40 early on Monday but ended $9.40 higher at $573.50 per metric ton.
Chicago Board of Trade soybean and soyoil futures also rose on Monday after hitting lows last week. CBOT November soybeans SX24 were up 19 cents at $9.76 per bushel and December soyoil BOZ24 ended 0.41 U.S. cent higher at 39.08 U.S. cents per pound.
Reporting by Karl Plume in Chicago; editing by Jonathan Oatis
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