The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.
0844 ET - Antofagasta shares have limited room to rise after a recent rerating, UBS analyst Daniel Major writes. The copper miner's shares have outperformed peers after investors rewarded its copper growth story, he says. Antofagasta is likely to meet its 30% volume growth target over the next three years but its near-term outlook is mixed, he says. It has limited growth momentum over the next year and a mixed near-term operational performance, he adds. There are better opportunities buying Anglo American, Teck Resources and Freeport-McMoRan, he adds. Antofagasta shares fall 4.2% to 3,590 pence. (adam.whittaker@wsj.com)
0612 ET - Palm oil fell during Asian trading, tracking weakness in rival vegetable oils ahead of the weekend, Kenanga Futures says in a note. Strong export demand from India ahead of the festive season may be limiting losses, it adds. The Bursa Malaysia Derivatives contract for October delivery falls 13 ringgit to 4,711 ringgit a ton. (kimberley.kao@wsj.com)
0405 ET - Risks to Zambia's copper mining industry are easing after Thursday's peaceful presidential vote in Africa's second-largest producer of the industrial metal, says Zaynab Hoosen, head of Africa Risk Forecasting at Pangea-Risk. Investors have committed as much as $10 billion to Zambia's copper mining industry since President Hakainde Hichilema came to office five years ago, although pressure is mounting on the government to ensure that the mining boom delivers economic benefits amid surging global copper demand. "Zambia's election comes at a critical point as global powers compete for a foothold in Africa's critical mineral supply chains," Hoosen says in a note. "President Hakainde Hichilema entered the vote as the favorite for a second term."(Nicholas.Bariyo@wsj.com;@Nicholasbariyo)
0350 ET - London's miners fall as gold trades lower and heads for a small weekly loss. New York gold futures fall 0.8% to $4,385.90 a troy ounce after a rally this week, with the dip suggesting there has been some profit-taking, MUFG's Soojin Kim writes. Copper miner Antofagasta continues to slide, having fallen nearly 7% Thursday on a copper guidance cut. It trades down 4.2%. Glencore falls 2.5% while precious metal miners Hochschild Mining, Fresnillo and Endeavour all fall over 2%. (adam.whittaker@wsj.com)
0328 ET - Gold prices are headed for a modest weekly loss as investors took profits after this week's rally. In early European trading, New York gold futures fall 0.8% to $4,385.90 a troy ounce. Prices surged above the $4,400 mark this week as softer inflation data reduce expectations of a rate-hike by the Federal Reserve in September. "The broader uptrend remains intact, but both markets have now failed to hold recent highs, suggesting some profit-taking after the sharp rally," analysts at Sucden Financial say. According to the CME's FedWatch tool, traders are now pricing in only a 32% chance of a rate hike next month. A lower interest-rate environment tends to support gold by reducing the opportunity cost of holding the nonyielding asset. (giulia.petroni@wsj.com)
0307 ET - Comex gold futures' uptrend is likely taking a minor pause, based on the daily chart, RHB Retail Research's Joseph Chai says in a research report. Latest price movements suggest that the precious metal is poised for a correction and is pulling back toward the 20-day simple moving average, the analyst says. The $4,300-per-ounce level will probably be an immediate support level. In a bullish technical setup, the commodity is expected to rebound from this support level, Chai adds. Spot gold is 0.3% lower at $4,335.63 per ounce. (ronnie.harui@wsj.com)
0221 ET - Antofagasta's growth projects are on track and will deliver meaningful volume growth over the medium term, Berenberg analysts Richard Hatch and Jasper Mainwaring write. The copper miner's Centinela concentrator project and Los Pelambres concentrate pipeline and expansion of the desalination plant will help drive volumes to 818,000 metric tons in 2028 from 654,000 tons in 2025. Shares closed Thursday at 3,756 pence. (adam.whittaker@wsj.com)
0046 ET - Iron ore futures are higher in a temporary rebound after the recent correction. Prices could continue to notch new lows in the next month, Galaxy Futures says in a research note. Overseas steel demand rose in June, but the momentum is unlikely to be sustained, it says, noting that China's iron-ore demand remains weak in both construction and manufacturing sectors. The steel-making ingredient will likely be unable to overcome the weak fundamentals in 3Q, it adds. The most actively traded January iron ore contract on the Dalian Commodity Exchange is 0.4% higher at 712.5 yuan a ton. (sherry.qin@wsj.com)
2236 ET - Palm oil prices are lower in early Asian trading on a likely technical correction, after closing higher in the previous session. However, prices could remain supported by concerns over tighter supply and stronger biodiesel demand expectations in Indonesia, AmInvestment Bank says in a note. The Bursa Malaysia Derivatives contract for October delivery is down 2 ringgit at 4,722 ringgit a ton. (amanda.lee@wsj.com)
2156 ET - Aluminum falls in early Asian trade. However, prices are likely to remain supported by signs of supply tightness in the aluminum market, ANZ Research analysts say in a note. The LME aluminum warehouse stockpiles are at their lowest level since 1990. The analysts also note that U.A.E. aluminum producer, Emirates Global Aluminium, aims to raise its output to pre-war levels in 1Q 2027.This comes after its main smelter was hit by Iranian missiles in March. The three-month contract on the London Metal Exchange is 0.7% lower at $3,236.50 a metric ton.(amanda.lee@wsj.com)
2059 ET - Gold declines in Asian trade. The yellow metal struggled to extend its rebound despite softer-than-expected U.S. producer-price index data, which suggests the next leg higher for gold prices might not be straightforward, say OCBC Group Research strategists Sim Moh Siong and Christopher Wong in a note. "Near-term consolidation or a moderate pullback cannot be ruled out unless softer data translate into lower yields/USD and firmer investment flows," they say. A high interest-rate backdrop typically weighs on nonyielding gold, while a stronger dollar usually makes the dollar-denominated precious metal more expensive for holders of non-dollar currencies. Spot gold drops 0.2% to $4,341.14 a troy ounce. (megan.cheah@wsj.com)
1503 ET - Livestock futures on the CME settled lower for the day, with live cattle and lean hog futures tumbling as the day progressed. For both contracts, the main push lower is stagnant consumer demand for beef and pork, the Hightower Report says in a note. Cutout prices for both are weaker, even though the Labor Day holiday is fast approaching, which is typically the last day of the grilling season in the U.S. Live cattle futures finished trading down 1.6% to $2.203 a pound, while hogs closed down 1.7% to 82.175 cents a pound.
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