The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.
1926 GMT - Lean hog futures settled lower to close out the trading day - with the most-active contract sliding 2.9% to 98.7 cents a pound. It's the second consecutive day that hog futures are lower, pushing them back below the $1 a pound threshold. Helping send the futures contract lower is a slide in the average pork carcass cutout price, down 38 cents per hundredweight to $98.13 per cwt late yesterday. Meanwhile, live cattle futures finished virtually unchanged at $2.41625 a pound, with the market reeling from the confirmation of a New World Screwworm case in the U.S. (kirk.maltais@wsj.com)
1902 GMT - Crude futures settle lower with market expectations of a resolution to the U.S.-Iran conflict outweighing concerns of a renewed flare-up. "The oil market has definitely gotten the sense that President Trump wants this thing over," says John Kilduff of Again Capital. Fears are increasing that the U.S. will "agree to anything to get it over with for a while so these prices can really come back down," he adds. The trickle of tankers making it through the Strait of Hormuz isn't resolving the problem and the market has been relying on storage, but stocks are running down as the strait remains effectively closed, Kilduff says. "The cliff in my opinion is in the beginning of July. That's when the real crunch should dawn." WTI ends down 2.7% at $90.54 a barrel and Brent falls 2% to $93.09. (anthony.harrup@wsj.com)
1855 GMT [Dow Jones]--U.S. natural-gas futures hand back gains from the previous two days to end the session and the week lower. Overnight and midday weather data shed several cooling degree days for the 9- to 15-day period, "which seemed to be the catalyst for selling/profit-taking," NatGasWeather.com says in a note. The U.S. will likely see moderate demand through the weekend, and "rather strong" from the middle of next week through the following week, the forecaster adds. Nymex natural gas settles down 3.2% at $3.229/mmBtu for a 1.9% weekly loss. (anthony.harrup@wsj.com)
1727 GMT - The number of rigs drilling for oil in the U.S. is up by two this week at 431 in a sixth straight increase, Baker Hughes reports. Oil rigs are at their highest level in almost a year as the Middle East conflict keeps oil prices high. A consideration for producers is that oil services companies cut their prices when oil prices are low, but will also increase them when oil prices are high, says Andrejka Bernatova, CEO of energy-focused special purpose acquisition company Dynamix Corporation III. "That's why producers are also cautious because they know that services prices are going to increase. You really have to see higher oil prices on a sustained basis before you deploy more capital," she says. Rigs directed at natural gas slipped by one to 124. (anthony.harrup@wsj.com)
1717 GMT - Cocoa futures trading on the Intercontinental Exchange look to be nearing the third-straight losing day, with the most-active contract off 5.9% to $3,804 per metric ton. Cocoa futures are down 9.3% over past three sessions. "Trader concerns over El Niño appear to have eased as there appears to be enough moisture in West Africa to support production," says ADM Investor Services in a note. Light and moderate rains are expected there over the next week, says the firm. Cocoa futures were on an uptrend in late April/early May, but fell in the second half of the month. (kirk.maltais@wsj.com)
1639 GMT - The grain market is bogged down as crops planted this spring seem to be entering the summertime with little in the way of weather stress. "The big crop narrative remains dominant," says Phil Flynn of Price Futures Group. "Traders are pricing in strong U.S. production potential with no major heat or drought threats materializing yet and hoping the Super El Niño means super yields." Corn production is expected to be down from last year's record-high, but is still seen landing at around 16 billion bushels, which is historically high. Flynn adds that summer weather is still a huge wildcard for grain futures, and can quickly change. Most-active corn is down 1.7%, soybeans fall 0.9%, and wheat is 0.4% lower. (kirk.maltais@wsj.com)
1629 GMT -- Grain traders continue to reduce their exposure to futures, with risk premium covering developments in the U.S.-Iran war being removed while the outlook for threatening weather to nascent U.S. crops appears limited. "War and weather premium exiting the market in quick fashion," says Brady Huck of EmpowerAg. "[It's a] full-on weather market, with outside macro market support fading." Most-active CBOT corn futures are down 1.5% midday, while soybeans shed 0.6% and wheat falls 0.4%. (kirk.maltais@wsj.com)
1526 GMT - Gold prices plunge below the $4,400-a-troy-ounce mark after the U.S. posted another month of strong job gains in May, raising concerns over potential interest-rate hikes later this year. New York gold futures fall 2.8% to $4,377.10 a troy ounce. "Providing the labour market does not suffer a dramatic summer jobs scare again, then it looks increasingly likely that the FOMC will enact a couple of insurance hikes later this year," says Stephen Brown from Capital Economics. Meanwhile, stalled U.S.-Iran talks and fresh hostilities in the Middle East continue to keep oil prices elevated and inflation concerns alive, reinforcing expectations that central banks may keep interest rates higher for longer. (giulia.petroni@wsj.com)
1448 GMT--Saputo is approaching a volatile dairy market with a focus on low-cost production and tighter operational discipline. "We're feeling really good about the business continuing to optimize and through our continuous improvement programs," says CFO Maxime Therrien in an earnings call, adding that he expects to further gains in overall operating costs. He says the company remains "very disciplined" on inventory management and the overall supply and demand planning process, aiming to keep "working capital as low as possible, yet not sacrificing our service levels." He says protecting margins is a priority in the current geopolitical climate, while still "remaining competitive ... and focused on growth." Shares are up 0.6% to C$42.94, rebounding from a low of C$39.26 earlier in the morning. (adriano.marchese@wsj.com)
1431 GMT--Canadian dairy products company Saputo faces a more-complicated road into fiscal 2027, despite 4Q landing largely in line, Desjardins analyst Chris Li says. He notes that adjusted Ebitda matched consensus, though higher stock-based compensation and higher advertising spend weighed on the quarter, while the pending sale of the Argentina division, classified as discontinued operations, continues to shape results. While demand remains broadly strong, Li says that the sector still remains strained. "Dairy market factors will likely remain volatile due to timing differences between input costs and pricing, inventory realization cycles, and market supply-demand conditions," he says. He points to higher SG&A costs, as well as capex, which will be partially offset by cost-reduction initiatives. (adriano.marchese@wsj.com)
1429 GMT - CBOT grains are lower, with fund traders continuing to cut exposure in grain long positions ahead of the weekend. "Ag markets are trading mostly lower again this morning with fund selling continuing to weigh on the corn/bean markets," says Doug Bergman of RCM Alternatives in a note. Bergman adds that good weather in the U.S. and a lack of news on fresh sales to China are keeping funds on the sidelines. Most-active CBOT corn is down 1%, while soybeans shed 0.1% and wheat is essentially flat. The CFTC will release updated fund positions in its next Commitments of Traders report this afternoon. (kirk.maltais@wsj.com)
1413 GMT - The outbreak of New World Screwworm is being felt in cattle futures. "After heavy selling earlier in the week, cattle futures staged a major reversal as traders shifted from 'selling the rumor' to 'buying the fact' following confirmation of the screwworm case," says Joe Davis of Futures International in a note. Feeder cattle futures are up today on the emergence of the parasite. Lean hog futures are down 1% in morning trade. New World screwworm fly larvae were found in a 3-week-old calf in Texas this week. (kirk.maltais@wsj.com)
(END) Dow Jones Newswires
June 06, 2026 00:15 ET (04:15 GMT)
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