WINNIPEG, Manitoba--The path of canola as well as other commodities will very likely be determined by the latest earnings report from technology giant Nvidia, according to analyst Errol Anderson of Errol's Commodity Wire in Calgary.

"Nvidia is bigger than all of Canada's economy. It's bigger than the Chinese stock market by itself," stated Anderson. "That report, even though it's not related to canola will have an impact. It's the most powerful stock in the world."

Based in Santa Clara, Calif., Nvidia controls about 80% of the world market's share of high-end graphics processing units and is involved in developing artificial intelligence.

Should Nvidia's report be favorable to world markets, including canola, he pegged resistance for the May contract at C$620 per ton on the Intercontinental Exchange. If momentum builds for the Canadian oilseed, Anderson put the next level of resistance at C$650 per ton, followed by C$680.

If Nvidia's report is negative, Anderson said, "the equity world stumbles, and it will feed itself" with crude oil, corn and other commodities falling back.

"Canola will get caught in the crossfire. It can go up to $620 or it can go down to $550," he said.

Anderson added that canola, along with corn and soybeans on the Chicago Board of Trade, are oversold and are looking for an increase.

"We won't see $700 in the near future, but I hope we won't see $550," he commented.

Nvidia was scheduled to release its report after the North American markets closed on Feb. 21. The effects were to be felt the following day.

Source: Commodity News Service Canada,

(END) Dow Jones Newswires

02-21-24 1741ET