The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.
1540 ET - Livestock futures on the CME finish lower, with live cattle settling down 0.2% to $2.53375 a pound, while lean hogs settle down 0.4% to $1.029 a pound.Livestock was supported this morning by weather issues and hopes that the deal with China to purchase $17 billion worth of U.S. agriculture will include increased sales of beef and pork to China, says ADM Investor Services in a note. However, that enthusiasm was sapped by this afternoon, with higher oil futures seen crimping consumer spending on costly meat choices like beef. (kirk.maltais@wsj.com)
1510 ET - Crude futures rise amid market concerns that the continued closure of the Strait of Hormuz is draining global stocks, while the U.S. and Iran appear no closer to a deal to settle the conflict. Prices rose on "the perception the war in Iran is turning into yet another forever war, with as many as 14 million barrels a day of Middle East oil production shut in," Mizuho's Robert Yawger says in a note.He sees the market "perpetually ticking higher as supply drains out across the globe." WTIfor June delivery settles up3.1% at $108.66 a barrel ahead of tomorrow's expiration. Brent rises 2.6% to $112.10 a barrel.(anthony.harrup@wsj.com)
1452 ET - U.S. natural gas futures extend gains to four straight sessions as power-sector use rises to meet cooling demand in the southern U.S. and on the East Coast, although some cooler weather is expected later in the week. "The immediate power burn impulse may be difficult to carry straight through Memorial Day," Gelber & Associates says in a note. Still, "if heat reloads quickly, the market can keep defending a higher range because power burn is finally absorbing molecules at a summer-like pace." Nymex natural gas settles up 2.2% at $3.024/mmBtu.(anthony.harrup@wsj.com)
1417 ET - NextEra Energy's acquisition of Dominion Energy highlights the long-term growth potential of the U.S. electrification infrastructure sector, but is unlikely to trigger a broad wave of utility consolidation given regulatory hurdles and the localized nature of utility oversight, says Tortoise Capital senior portfolio manager Rob Thummel. The greater scale from the deal could provide more financial flexibility and additional opportunities for future growth, he says, noting that Dominion's generation assets are "strategically located in the heart of 'Data Center Alley,' where electricity demand from AI and cloud infrastructure is accelerating." The deal likely faces a "lengthy and complex regulatory approval process," he adds. Dominion rises 7.8% and NextEra falls 7%.(anthony.harrup@wsj.com)
1402 ET - CBOT grain futures are up strongly, but some traders anticipate a healthy Crop Progress report later today may hit the brakes on the run. "With the corn and soybeans planting running ahead of schedule the rain across the Midwest this week is bearish and should limit gains in the latter part of the week," says Joe Davis of Futures International. The Crop Progress report will show data for the week ended May 17, meaning that the impact of inclement weather seen in the Plains and Corn Belt may not show up until next week. CBOT corn is up 4%, soybeans rise 3.1% and wheat climbs 4.2%. (kirk.maltais@wsj.com)
1257 ET - Demand for commodities is being seen in energy, agriculture, and industrial metals. Part of this uptick comes from returning focus on the "scarcity premium" -- the potential that the world is short on some materials it needs to keep running. "Investors are positioning for a world where physical assets matter again: power, grids, data centres, defence, reshoring and electrification all need more energy and materials," says analysts with eToro in a note. But behind this is the industrial health of China -- in that any sign of flagging activity in the country's industrial segment could reverse the scarcity sentiment. "If Chinese demand softens, metals may lose their growth signal," says eToro. (kirk.maltais@wsj.com)
1234 ET - The latest Commitments of Traders report showed a reduction in long positions in corn and soybeans, while more short contracts were added to wheat positions. This eased concerns of a potential price plunge tied to overleveraged traders. Another positive for markets is word that China will buy $17 billion worth of U.S. agricultural goods through 2028. "Markets love details and now some details have emerged," says Brian Grete of Commstock Investments. But Grete cautions that risk factors remain. "Traders must also monitor weather, crop development, geopolitics and other factors," he says. "That's a lot of balls in their air that must be juggled." Corn rises 4%, wheat climbs 4.1% and soybeans are up 3.2%. (kirk.maltais@wsj.com)
1230 ET - McDonald's shares aren't cheap enough to make it onto a value menu, but they're certainly a bargain right now after falling 8% year-to-date in the wake of slugging near-term sales, UBS analysts say in a research note. The market isn't recognizing that the Golden Arches has room to pick up market share with initiatives including the introduction of Extra Value Meals and its recently beefed-up McValue platform, the analysts say. It can also ride out near-term headwinds with gains in its digital business and loyalty program, as well as its marketing efforts, they say. New products and limited-time-offers should stack up to higher spending and guest counts, the analysts say, maintaining a buy rating on the stock. Shares rise 2 to $281.84. (dean.seal@wsj.com)
1225 ET - Heavy storm activity is being seen in U.S. growing areas, supporting CBOT grain futures that were already higher on news that China will buy $17 billion worth of U.S. agricultural goods through 2028. A daily weather report from the USDA says severe thunderstorms have produced both tornadoes and flash flooding in the Corn Belt, while storms in the Plains resulted in wind and hail damage in Kansas and South Dakota. Today's Crop Progress report will provide fresh data on crop conditions nationwide. CBOT corn is up 3.9%, soybeans climb 3% and wheat rises 3.9%. (kirk.maltais@wsj.com)
1200 ET - Oil futures are higher following a brief dip as the longer the Strait of Hormuz remains closed, the tighter global oil supplies will become."We believe that current WTI and Brent prices are discounting only a limited portion of the ultimate supply loss," Ritterbusch & Associates says in a note. "A re-opening of the Strait of Hormuz anytime soon remains highly uncertain." And with the likelihood it will take several months to restore the flow of oil through the strait and revive shut-in production, "it appears that a return to prewar oil prices by the end of this year is highly unlikely."Most active WTI is up 1.7% at $102.76 a barrel and Brent is up 1.5% at $110.89.(anthony.harrup@wsj.com)
1159 ET - The showdown with the U.S. and Iran on the Strait of Hormuz continues, and both sides are keeping so-called "no-go" demands in their pitches to end the war and reopen trade fully. As a result, traders are pricing what a lingering war will mean for oil prices -- with the expectation that a lack of access to Middle Eastern oil will raise prices across the world and stress sectors like agriculture. "The markets are starting to deal with some longer-term realities, such that the real impact of the rising energy deficits will likely start being felt in June and July, and the longer-term realities of the fertilizer story will likely be felt with the global 2027 crops," says Arlan Suderman of StoneX in a note. (kirk.maltais@wsj.com)
1148 ET - Gold prices remain below $4,600 a troy ounce despite a weaker U.S. dollar, as a lack of progress in Iran peace talks fuels concerns over the direction of interest rates. "The macro backdrop remains particularly difficult for gold," says Fawad Razaqzada from Forex.com. "Higher government bond yields continue to drain appeal from non-yielding assets, while elevated oil prices are reinforcing fears that inflation could remain stubbornly high for longer than markets had hoped." New York futures are down 0.4% to $4,546.10 a troy ounce. (giulia.petroni@wsj.com)
(END) Dow Jones Newswires
May 18, 2026 16:15 ET (20:15 GMT)
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