By Marlo Glass, MarketsFarm
WINNIPEG, Nov. 26 (MarketsFarm) – The ICE Futures canola market was under pressure at midday Tuesday, following trends set earlier in the week.
Prices began the week lower, pressured by the weeklong Canadian National Railway (CN Rail) strike. However, CN Rail announced on Tuesday morning that workers will return to work as early as Tuesday afternoon, providing some firmness to canola.
“The announcement that [the strike] is being settled, that is allowing canola to stay a bit firmer today,” remarked one Winnipeg-based trader.
Short coverings had been a feature in trading, due to the uncertainty posed by the rail strike.
Canola values were furthered pressured by a lower tone for the soy complex on the Chicago Board of Trade.
“Getting canola to go up will be quite a challenge due to the weakness in soybeans,” the trader commented.
About 12,300 canola contracts traded as of 10:35 CST.
Prices in Canadian dollars per metric tonne at 10:35 CST:
Price Change
Canola Jan 456.90 dn 2.50
Mar 465.90 dn 2.80
May 474.20 dn 2.40
Jul 480.80 dn 2.10
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