WINNIPEG, Manitoba--ICE futures canola contracts remain stuck in a sideways trading range to start the New Year, with bearish outside forces countered by relatively supportive fundamentals.
From a chart standpoint, March canola is stuck in a sideways range between C$800 to C$900 per metric ton, with little to suggest an imminent break one way or the other.
"I don't think there's a hard consensus about where we go next... I don't have a solid opinion up or down right now," said MarketsFarm Pro analyst Mike Jubinville.
He noted that the U.S. Department of Agriculture is set to release several key reports on Jan. 12, which could provide some nearby direction to the grains and oilseeds.
"From a demand perspective we look 'ok' on canola," said Mr. Jubinville, but he added that larger macroeconomic issues may weigh on the commodity. "There's a macro wet blanket sitting on top of us."
Mr. Jubinville pointed to recessionary concerns, worries about inflation and rising interest rates, the ongoing conflict in Ukraine, as well as COVID-19 issues in China and the potential implications for demand.
However, wide canola crush margins suggest that domestic demand from processors should remain strong, while Jubinville expected to see a solid export program despite increased competition from Australia this year.
Source: Commodity News Service Canada, news@marketsfarm.com
(END) Dow Jones Newswires
01-04-23 1713ET
