Winnipeg, Manitoba--ICE Futures canola contracts drifted lower during the week ended Feb. 15, although values remained rangebound overall.
"The market is maybe coming to the realization that we still have near record South American (soybean) supplies on hand," said Ken Ball, of PI Financial in Winnipeg on the downtrend. While Argentina has suffered crop losses from drought, he said increased Brazilian production prospects have more than made up for any shortfalls.
"There's a muddled mixture of stuff in the markets," said Mr. Ball. He noted that in addition to the South American production uncertainty, the ongoing tensions in Ukraine were supporting the grains and oilseeds in general.
The production concerns in Argentina have been especially supportive for soymeal, and Mr. Ball saw the meal market as being vulnerable to a correction. If meal peaks, it could weigh on soybeans and in turn canola.
Argentina is already importing Brazilian soybeans to keep their domestic processors operating. Brazilian soybeans are also working their way to China, with U.S. export projections for sales to China already filled for the year.
Source: Commodity News Service Canada
Write to Phil Franz-Warkentin at news@marketsfarm.com
(END) Dow Jones Newswires
02-15-23 1710ET
