MARKET MOVEMENTS:
--Brent crude oil is down 0.1% to $74.12 a barrel.
--European benchmark gas is down 0.15% to EUR39.59 a megawatt-hour.
--Gold futures are up 0.7% to $2,709.30 a troy ounce.
--LME three-month copper futures are down 0.9% at $9,501.50 a metric ton.
TOP STORY:
Nestle Says Slowdown in Rising Food Costs Isn't Soothing Pinched Shoppers
Shoppers around the world are spending more cautiously, Nestle warned Thursday, prompting the packaged-food company to increase promotions to persuade consumers to open their wallets.
"The perception of consumers everywhere but especially in the U.S. is that food prices are high," Chief Executive Laurent Freixe said in an interview, adding that many shoppers feel stretched after a period of surging inflation.
Having repeatedly raised prices to offset higher costs in recent years, Freixe indicated that Nestle would offer more discounts and cut prices to attract shoppers to its products, which include KitKat chocolate, Nescafe coffee and Purina pet food. "We are out of a period of high inflation," he said. "The environment is now more intense."
The comments came as Nestle reported weaker-than-expected third-quarter results and slashed its full-year sales forecast, warning that consumers around the world are pulling back on spending even as price rises ease.
OTHER STORIES:
Global Grain Output Estimates Kept at Record High
Global grain production is still seen at a record high for the harvest ending next year, the International Grains Council said Thursday.
The IGC continues to forecast global grain output at 2.315 billion metric tons in 2024-25, unchanged versus September's estimate. This would reflect a record high, rising from the 2023-24's estimated harvest of 2.306 billion tons.
The output reflects localized dryness slightly curbing wheat prospects in Australia and Argentina, as well as trimmed estimates for the European Union and Russia. Though with increases from elsewhere--including Kazakhstan and Turkey--the overall estimate remains unchanged.
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Cocoa Demand Fell in Europe in the Third Quarter, According to New Report
Cocoa beans usage fell in Europe in the third quarter, though it remains relatively stable, according to a report from the European Cocoa Association.
The number of grindings, or beans processed to be turned into chocolate, fell 3.3% on year in Europe in the third quarter to 354,334 metric tons, according to the ECA. Grind statistics are used as a proxy for cocoa demand, with Europe one of the world's largest markets for cocoa.
The ECA is a trade association grouping major companies involved in the bean trade and processing, warehousing and other logistical activities in Europe.
Cocoa futures closed Wednesday down 1.1% to $7,678 a ton, though they remain up nearly 83% since the start of the year. Cocoa hit an all-time high of $11,722 a ton in April on fears of a supply shortage, before a sharp sell-off.
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Centamin Cash Flow Surges on Higher Output, Gold Prices
Gold miner Centamin's third-quarter production soared, leading to a surge in cash flow amid record-high prices for the precious metal.
The London-based mining company said Thursday that it dug 131,726 ounces of gold in the third quarter, up 30% from the same period last year, driving a 44% jump in gold ounces sold.
The burst in output compared with last year was driven by its flagship Sukari mine in Egypt, which has been ramping up this year following large investments in the project.
"This strong performance follows our significant investment in operational improvements which positioned us to capitalize on the current record gold price," Chief Executive Martin Horgan said.
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U.S. Crude Oil Stockpiles Fall Unexpectedly
U.S. crude oil stocks fell unexpectedly last week as refineries raised their capacity use and a decline in imports offset an increase in production to a record level, according to data released Thursday by the U.S. Energy Information Administration.
Commercial crude oil stocks excluding the Strategic Petroleum Reserve fell by 2.2 million barrels to 420.5 million barrels in the week ended Oct. 11 and were about 5% below the five-year average for the time of year, the EIA said.
Analysts surveyed by The Wall Street Journal had predicted crude stockpiles would rise by 1.9 million barrels.
Oil held in the SPR increased by 952,000 barrels to 383.9 million barrels. Oil stored at Cushing, Okla., the Nymex delivery hub, was up by 108,000 barrels at 25 million barrels.
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Phillips 66 Hit With $604.9M Verdict in Suit Brought by Propel Fuels
Phillips 66 has been hit with a $604.9 million verdict by a jury that decided against the energy company in a lawsuit brought by Propel Fuels alleging the misappropriation of trade secrets related to its renewable fuels business.
The jury returned the verdict in the case before the Superior Court of the State of California, Alameda County, Phillips said Thursday.
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K92 Mining Shares Up on Upgraded Gold Reserve Estimates, Costs at Papua New Guinea Mine
Shares of K92 Mining rose after it said it has increased the gold estimate at its mine in Papua New Guinea and that it expects better economics from its operations than previously expected.
The miner said that measured and indicated resources at its Kainantu Gold Mine Project increased by 14% to 2.6 million ounces and inferred resources were upgraded by 73% to 4.5 million ounces, which will extend the mine life.
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Equinox Gold Shares Fall on Disappointing 3Q Ontario Mine Output, Reduced Outlook
Equinox Gold shares were lower Thursday after it said the gold output from its new Ontario mine missed expectations and has lowered its production guidance.
Shares are down 7.1% at 7.51 Canadian dollars ($5.46).
The Canadian miner said that it has produced about 42,500 ounces of gold produced in the third quarter from its Greenstone mine and 59,000 ounces produced since pouring first gold in May.
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Lucid Group Shares Fall 12% on Wider Loss Guidance, Lower EV Deliveries
Shares of Lucid Group dropped 12% to $2.89 in postmarket trading after the company guided for significantly wider losses in the third quarter.
The Newark, Calif.-based electric vehicle manufacturer said Wednesday it expects third-quarter losses of $765 million to $790 million from reported losses of $630.9 million for the year-ago period. In the prior quarter, it had reported losses of $643.4 million.
The company said that it also produced fewer vehicles in the third quarter than in the second quarter.
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Santos 3Q Sales Revenue Falls 3%, Pikka Project Costs Rise
SYDNEY--Santos reported a 3% fall in sales revenue in its latest quarter and said it expects to spend more on its Pikka oil-field development in Alaska than previously thought.
Santos said its sales revenue totaled US$1.27 billion in the three months through September, lower than the US$1.31 billion achieved in the previous quarter. That result partly reflected a 3% decline in oil and natural gas production to 21.6 million barrels of oil equivalent.
Santos is advancing two projects that will support growth in output in coming years. On Thursday, management said the Barossa natural-gas project offshore Australia is more than 82% complete and on track for first production in the third quarter of next year. Meanwhile, the first phase of the Pikka oil project in the U.S. is 67% complete.
MARKET TALKS:
U.S. Ethanol Stocks Rise With Production Steady On Week -- Market Talk
1236 ET - U.S. ethanol production was little changed last week at 1.04 million barrels a day, while stockpiles edged up to 22.3 million barrels from 22.2 million a week before and were 1.2 million barrels above their year-earlier level, the EIA reports. Analysts surveyed by Dow Jones estimated stocks between 21.1 and 22.9 million barrels for the week of Oct. 11, and production between 1.01 and 1.05 million b/d. Corn futures pick up from early selling with the December contract up 0.4%. (anthony.harrup@wsj.com)
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Oil Inches Lower Despite U.S. Crude Stockpiles Draw -- Market Talk
1633 GMT - Oil prices are edging lower in volatile trade despite positive signals over demand in top consumer the U.S. Brent crude is down 0.2% at $74.08 a barrel, while WTI is flat at $70.38 a barrel. According to the latest EIA data, U.S. commercial crude oil stocks fell by 2.2 million barrels in the week ended Oct. 1, against analysts' expectations of a 1.9-million-barrels rise. Still, concerns over lackluster demand in China and a global surplus next year as OPEC+ prepares to reintroduce some barrels into the market continue to weigh heavily on sentiment. Meanwhile "geopolitical tensions in the Middle East are unlikely to fade in the near term and will likely result in ongoing high volatility," according to UBS' Giovanni Staunovo, as markets wait to get more clarity on the scope of Israel's response to Iran. (giulia.petroni@wsj.com)
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U.S. Natural Gas Holds Gains After Storage Data -- Market Talk
1049 ET - U.S. natural gas futures hold gains as the weekly storage build lands roughly in line with expectations, further shrinking the surplus over the five-year average. The EIA reports gas in underground storage rose by 76 billion cubic feet to 3,705 Bcf as of Oct. 11. Analysts in a Wall Street Journal survey had forecast an increase of 74 Bcf. Inventories were 163 Bcf above the five-year average for the week, down from a surplus of 176 Bcf the week before. The Nymex front month is up 1.6% at $2.404/mmBtu. (anthony.harrup@wsj.com)
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Gold Futures Rise to New Record on Sliding Treasury Yields, China Demand -- Market Talk
(MORE TO FOLLOW) Dow Jones Newswires
October 17, 2024 14:01 ET (18:01 GMT)
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