The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.
0910 ET - Crude futures are lower and on track for weekly losses as the market remains optimistic about the amount of oil making it out of the Persian Gulf region. Flows through the Strait of Hormuz appear to be hitting highs not seen in over a month, Alex Hodes of StoneX says in a note. "Hopes of a 'temporary opening' of the strait have alleviated some pressures on the market--but no peace deal has been confirmed and although the rhetoric has softened somewhat, continued disruptions are expected," he says. WTI is down 1.2% at $82.51 a barrel, and most active Brent is off 1.2% at $87.48. (anthony.harrup@wsj.com)
0632 ET - Palm oil rose in Asian trade. Prices were likely supported by the overnight strength in rival oil prices, as well as a potential of short covering activities ahead of public holiday extended weekend, Kenanga Futures writes in a note. However, weak export demand and concerns over palm oil's reduced competitiveness against soybean oil may have capped the upside, it adds. The Bursa Malaysia Derivatives contract for November delivery was 74 ringgit higher at 4,890 ringgit a ton. (kimberley.kao@wsj.com)
0559 ET - Boliden's acquisition of Nexa Resources will significantly expand the group, creating a global zinc leader with a top three position in mining and smelting, Deustche Bank analyst Liam Fitzpatrick writes. Swedish miner Boliden has reached an agreement to purchase Votorantim's 65% stake in Nexa and has committed to a voluntary tender offer to purchase the remaining 35% of shares owned by minority shareholders. The deal will increase Boliden's consolidated Ebitda by over 35% and expand the number of operating assets from 12 to 20. The deal is expected to be immediately EPS accretive, reflecting Nexa's low multiple, Fitzpatrick adds. Deutsche Bank rates Boliden at hold with a 620 Swedish kronor target price. Shares rise 1.8% to 576.80 kronor. (dominic.chopping@wsj.com)
0428 ET - Gold prices remain supported as investors fret about U.S. fiscal issues, ANZ analysts write. Investors are buying gold as they seek protection from runaway budget deficits and a weaker dollar, they write. Investors will also have a close eye on the Jackson Hole meeting for any signals on the path of U.S. interest rates. In New York, gold futures trade flat at $4,666.20 a troy ounce. (adam.whittaker@wsj.com)
0348 ET - Shares in London-listed miners rise as European markets open strongly. Across the board, indexes in the region rise, with banking stocks recovering some of Thursday's loses. Luxury stocks in France and auto stocks in German perform well. For miners, the wider positive outlook is also underpinned by strong gold prices, with futures at $4,653.90 a troy ounce on safe-haven buying. Precious metals miner Hochschild Mining gains over 3% while Endeavour Mining is up 2.3%. Diversified miner Anglo American is up 1% while copper miner Antofagasta rises 1.3%.(adam.whittaker@wsj.com)
0328 ET - Oil prices edge lower but trade above midweek lows, as earlier hopes for an advance in peace talks and the reopening of the Strait of Hormuz are fading. In early European trade, Brent crude oil for October delivery slips 0.3% to $89.42 a barrel, while WTI is down 0.3% at $83.25 a barrel. The White House has told mediators the U.S. will not return to temporary peace terms agreed with Iran in June, The Wall Street Journal reports. Signs that producers in the Persian Gulf are managing to export through the strait are limiting oil's rise, ANZ analysts write. Satellite images shows that Saudi Arabia's oil loadings inside the Persian Gulf are rising, they note. (josephmichael.stonor@wsj.com)
2352 ET - Lynas Rare Earths has again been vague in its guidance for the year ahead, says UBS. "While there was much focus [and perhaps disappointment] on the FY27 outlook...we argue that LYC's value proposition [at least for us] has always been far more expansive than one-year earnings," the bank says. Its view is that the hurdle to higher volumes relates to Lynas's own ability to produce more, rather than any difficulty in finding customers. UBS says it is focused on costs, as expanded facilities ramp up, as well as continued increases in heavy rare-earths output and the miner's long-term downstream growth plans. UBS reiterates its buy rating. Its trims its target to 22.50 Australian dollars a share from A$22.75/share. The stock is down 1.4% at A$16.17.(rhiannon.hoyle@wsj.com; @RhiannonHoyle)
2303 ET - Iron ore prices are higher in early Asian trade amid improving sentiment and persistently high shipping rates. However, iron ore demand remains relatively weak while supply stays at an elevated level, Baocheng Futures says in a research note. Although iron ore prices are rebounding after recent falls, China Galaxy Futures still holds a relatively bearish view given China's sluggish steel demand in both the construction and manufacturing sectors. The most actively traded January iron ore contract on the Dalian Commodity Exchange is up 1.0% at 724.0 yuan a ton. (sherry.qin@wsj.com)
2247 ET - Palm oil rises in Asian trading following overnight gains in soybean oil prices on the Chicago Board of Trade. However, technical analysis suggests that crude palm oil futures are showing bearish momentum, AmInvestment Bank says in a note. Any further gains may face resistance at 4,892 ringgit a ton, while weak export demand and mixed production estimates continue to weigh on sentiment, it says. The Bursa Malaysia Derivatives contract for November delivery is up 53 ringgit at 4,869 ringgit a ton. (yingxian.wong@wsj.com)
2240 ET - Macquarie questions the role of manganese in South32's portfolio in the long term. As the miner sells its aluminum business, it is putting copper and zinc at the heart of growth plans. Alongside South32's FY results, management reiterated that copper and zinc are the preferred growth commodities, while the near-term focus for manganese is safe and stable operations, Macquarie says. "There was no update on potential portfolio action, leaving manganese's longer-term strategic fit unresolved as the aluminum divestment progresses," it says. Macquarie has a neutral rating on South32. It raises its target price by 16% to 5.00 Australian dollars a share, citing higher spot commodity prices, among other factors. Shares are unchanged at A$5.21.(rhiannon.hoyle@wsj.com; @RhiannonHoyle)
2228 ET - Sime Darby's rental and maintenance activities in its Australasia industrial division are expected to recover after several quarters of deferment, Maybank Investment Bank's Loh Yan Jin says in a note. Industrial demand across other Asian markets should remain supported by strong data-center and infrastructure spending, she writes. The analyst expects the motor division to continue benefiting from EV sales and support from vehicle manufacturers, while the Malaysian company's UMW unit will likely be supported by stable automotive demand and new model launches. Loh raises FY 2027-FY 2028 earnings forecasts for Sime Darby by 10%-15% following better-than-expected FY 2026 earnings. Maybank boosts the target price to 2.96 ringgit from 2.53 ringgit while maintaining a buy rating on the stock. Shares are 0.4% higher at 2.52 ringgit. (yingxian.wong@wsj.com)
2224 ET - Boss Energy bull Macquarie thinks investors are too wrapped up in the uranium producer's short-term outlook. "FY27 is not the destination, yet the market has over-focused on it," Macquarie says in a note. It says the year ahead will be one of transition for Boss, which disappointed with weak FY27 guidance reflecting lower grades. "We suggest looking longer term" and focusing on the ramp up to 1.9 million pounds a year, says the bank. "Honeymoon value will be better demonstrated when fully ramped," it says. Macquarie reiterates an outperform rating and raises its price target by 2.8% to A$1.80 a share. Shares of Boss are down 2.3% at A$1.48, adding to Thursday's 17% tumble.
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