CN workers go on strike

Nov 19, 2019

More than 3,000 employees walked off the job Tuesday

By Diego Flammini
Staff Writer
Farms.com

Staff at one of Canada’s national railways are striking.

On Saturday, the Teamsters Canada Rail Conference (TCRC), which represents more than 3,000 conductors, trainpersons and yardpersons at Canadian National Railway (CN), served the company with notice of its intent to strike.

Under the Canada Labour Code, a union must give an employer a written 72-hour strike notice. Workers walked off the job at 12:01 a.m. ET Tuesday.

The previous collective agreement between the two parties expired on July 23.

Exercising the right to strike will help ensure employee safety.

“Fatigue has been recognized by the Transportation Safety Board as a major safety problem in this industry. Too many railroaders are operating trains when they should be resting,” Lyndon Isaak, president of the TCRC, said in a statement. “For the safety of all Canadians, we cannot allow CN to make it even harder for our members to get the rest they need.”

The strike action also comes after CN celebrated a good start to the 2019-2020 crop year.

The railway moved 2.8 million metric tonnes of grain in October, breaking the previous record of 2.7 million metric tonnes in April 2019.

Producers can ill afford a delay in grain transportation.

“We’ve certainly been monitoring the situation and it’s a huge blow if we lost our rail shipments,” John Guelly, chair of the Alberta Canola Producers Commission, told Farms.com. “Our canola products are shipped via rail, and this strike would certainly cause a lot of congestion on top of all the other problems we’re having.

“If elevators and crushers can’t ship product by rail, it’s going to backlog everything and stop delivery. And if you can’t deliver a product, you’re not going to get a cheque for anything.”

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.