MarketsFarm — As 2022 comes to an end, a trader stated the commodities market will very likely remain rangebound through the New Year.
Ken Ball, of PI Financial in Winnipeg, said there’s heavy spreading, as well as the maneuvering of year-end positions and plenty of liquidation going on at the moment, “all trapped in a sideways affair.
“None of these markets have a situation beyond that says they’re going anywhere right now,” he said, adding activity was way down in several commodities.
Ball said this has very little to do with canola itself, but much more to do with the large amounts of spreading the markets have been witnessing.
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He noted speculative money believes many of the grains and oilseeds are too high, including canola, without any reason to completely justify those prices.
“They will tend to avoid them,” Ball said, but suggested a situation could create “dominant direction” for canola and other commodities.
“Barring something unusual, the odds are something is going to fade.”
In the meantime, Ball pointed to increases canola made during most of its trading on Wednesday. With ICE canola futures taking two days off for the holidays, it had to catch up to the gains made at the Chicago Board of Trade (CBOT) the day before.
“It’s just the usual stuff, year-end crapola. None of these markets are going anywhere. They’re just waffling back and forth,” the trader said.
— Glen Hallick reports for MarketsFarm from Winnipeg.
