ICE canola tumbles as rail stoppage halts shipments ahead of harvest
All figures in Canadian dollars unless noted
Aug 22 (Reuters) -ICE canola futures plunged on Thursday as a labor stoppage at both of Canada's main railway companies threatened to disrupt crop transportation as the harvest is due to ramp up in the coming weeks.
Canadian National Railway and Canadian Pacific Kansas City locked out more than 9,000 unionized workers on Thursday. Prime Minister Justin Trudeau said the government will announce soon how it plans to tackle the stoppage.
November canola RSX4 fell $12.10 to $565.50 per metric ton. The benchmark contract ended within $4.10 of a life-of-contract low set on Monday.
Local grain elevators in the Canadian Prairies have been cutting cash basis values despite slumping futures. They are concerned they would be flooded with supplies if they are unable to ship grain out due to the rail stoppage, traders said.
Sharply lower Chicago Board of Trade soybean and soyoil futures also pressured canola on Thursday.
Euronext November rapeseed futures COMX4 fell 1.6%, while Malaysian palm oil FCPOc3 gained 1.9%. POI/
Reporting by Karl Plume in Chicago; Editing by Tasim Zahid
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