WINNIPEG--Expect canola and other oilseed markets to remain choppy for the time being, says trader Ken Ball of PI Financial in Winnipeg.
"All of the markets are very choppy and erratic. They're very nervous markets," Mr. Ball said, noting the war in Ukraine and the drought in Argentina are having some of the biggest impacts on vegetable oils.
Russia ramped up its bombardment of Ukraine's infrastructure after several Western countries said they will send battle tanks to the beleaguered nation, according to reports. The war continues to impede Ukraine's grain and oilseed production and its exports.
"Argentina has had some nice rains in the last few weeks, but they have got to get two or three more," Mr. Ball said.
Soymeal on the Chicago Board of Trade is the most sensitive commodity when it comes to the drought in Argentina, as the country is a world leader in soymeal exports.
Mr. Ball said the markets will stay choppy for the time being. Although there has been speculative money coming into canola and other oilseeds, nothing really stands out to signal a major course change. Specs aren't interested at this time in trying to push prices very far, he said.
"Not unless they got some real ammunition behind them and I just don't think they quite got it."
Mr. Ball also stressed Argentina's production woes because of its drought are somewhat overblown. With a record soybean crop set to be harvested in Brazil, the continent is expected to have its largest supplies.
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
02-01-23 1606ET
