MarketsFarm – As 2022 draws to a close, one trader stated that the commodities market is very likely to remain range bound into the new year.
Ken Ball of PI Financial in Winnipeg said there is currently high diversification and maneuvering of year-end positions and many liquidations, “all caught up in a sideways affair.
“None of these markets have a situation beyond going anywhere right now,” he said, adding that activity across several commodities has fallen sharply.
Ball said this had very little to do with canola itself, but much more to do with the wide spread the markets were seeing.
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He noted that speculative money believes many grains and oilseeds, including canola, are too high without any reason to fully justify those prices.
“They’re going to tend to avoid them,” Ball said, but suggested a situation could create a “dominant direction” for canola and other commodities.
“Barring something out of the ordinary, chances are something will fade away.”
Meanwhile, Ball pointed to the increases in rap made during most of Wednesday’s trading. As ICE canola futures take two days off for the holiday, they had to catch up on gains made on the Chicago Board of Trade (CBOT) the previous day.
“It’s just the usual, year-end crapola. None of these markets are going anywhere. They just wobble back and forth,” said the dealer.
– Glen Hallick Reports for MarketsFarm from Winnipeg.
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