ICE Canada Morning Comment: Canola edges upward
Rail movement resumes at CPKC, CN
By Glen Hallick
Glacier Farm Media MarketsFarm – Canola futures on the Intercontinental Exchange were higher on Monday morning despite comparable oils being mixed.
While Chicago soyoil was on the rise, there were losses in soybeans and soymeal. As European rapeseed turned mixed, Malaysian palm oil swung upward. Although crude oil prices rose sharply, the spillover wasn’t translating into significant gains in the vegetable oils.
Canada’s two largest railways resumed running on Monday morning, although normal levels won’t be achieved for at least a few weeks. This comes after a chaotic weekend in which the Teamsters Canada Rail Conference issued strike notices to both railways, only for the Canada Industrial Relations Board ordering the Teamster members back to work for today. The CIRB is set to meet with the railways and the union on Thursday to discuss binding arbitration.
As the November canola contract inched closer to its 20-day moving average, it was a fair bit below its other major averages. Canola crush margins fell back with the November positions at C$101 to C$105 per tonne above the futures.
The Canadian dollar was higher on Monday morning with the loonie at 74.16 U.S. cents compared to Friday’s close of 73.92.
Approximately 9,300 contracts had traded by 8:37 CDT and prices in Canadian dollars per metric tonne were:
Price Change Canola Nov 587.80 up 3.00 Jan 599.30 up 2.70 Mar 608.20 up 3.00 May 612.90 up 2.40
