ICE Canola Midday: Prices pushing upward
Stage set for work stoppage at CPKC, CN
By Glen Hallick
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were on the rise at midsession Monday, due to gains in the Chicago soy complex.
Additional support was derived from increases in Malaysian palm oil, while pressure came from losses in European rapeseed. Small setbacks in crude oil weighed on vegetable oil values.
A work stoppage at Canada’s two largest railways appears to be a certainty as the Teamsters Canada Rail Conference issued its strike notice on Monday. Canadian National Railway followed shortly with its notice to lockout the union’s members while Canadian Pacific Kansas City previously warned it would do so. In excess of 90 per cent of Canada’s grain is moved by rail.
An analyst noted that the labour dispute will hit basis levels quite hard and “accelerate net cash values.”
The Prairie forecast has called for rain in northern Alberta while the rest of the provinces its to remain dry today. Also there are to be scattered showers for Saskatchewan and Manitoba.
The November canola contract remained well below its major moving averages while crush margins increased.
The Canadian dollar pushed higher by late Monday morning, with the loonie at 73.30 U.S. cents compared to Friday’s close of 72.96.
Approximately 20,800 canola contracts were traded as of 10:16 am CDT, with prices in Canadian dollars per metric tonne:
Price Change Canola Nov 569.00 up 4.90 Jan 578.80 up 3.70 Mar 587.20 up 2.80 May 592.70 up 2.80
