Canada Markets

The latest labor dispute to affect Canada's West Coast ports may be extremely irritating to most farmers but shows no sign of being a market factor so far.

The B.C. Maritime Employers Association has suggested it is trying to keep grain movement and cruise ship operations out of the dispute, with markets suggesting they have been successful in preventing canola supply disruption anxiety.

The accompanying chart displays the spread between ICE nearby canola futures minus Euronex nearby European rapeseed futures. You will notice there is no significant change in the spread since this latest situation developed. In contrast, take note of the significant break in the spread during the early September timeframe when the Grain Workers Union strike did cause concern about disrupted grain movement. Canola's premium to rapeseed declined by more than $60 per metric ton (mt) in a matter of two weeks. The spread quickly returned to normal when the market gained confidence that the government would intervene to ensure restoration of normal operations.

We will watch this closely for a souring of the situation but for now, it appears to be just an irritant and not a canola market factor.

Mitch Miller can be reached at mitchmiller.dtn@gmail.com

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