The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.
2011 GMT - Lean hog futures shake off early weakness and settle higher while cattle resume their move down after yesterday's pick-up. Choice boxed beef prices were lower, while select beef rose, and pork cutout prices were higher in the USDA's morning reports. "August and September are normally slow for pork sales," Chris Lehner of ADM Investor Services says in a note. "But October is national pork month with retailers offering pork sales. From mid-September into mid-October pork prices are likely to move up." Lean hogs rise 1.6% on CME to 81.9 cents a pound and live cattle slip 0.6% to $2.11725 a pound.(anthony.harrup@wsj.com)
1949 GMT - U.S. natural gas futures slip as the Nymex front month moves to October, a shoulder-season month when demand is typically mild. With hot weather seen extending into September, and LNG feedgas flows recovering, prices have maintained near-term support. This week also saw a decline in the inventory surplus over the five-year average, with the next few weekly storage injections also likely to be smaller than usual. Natural gas for October delivery settles down 0.9% at $2.888/mmBtu, but up 2.7% on the week. (anthony.harrup@wsj.com)
1945 GMT - Crude futures post weekly losses as the market expects tighter U.S. sanctions against Iran to lead to negotiations rather than military escalations, while Iran and Oman worked on an agreement to open a corridor through the Strait of Hormuz. Stronger Saudi oil loadings and Iraq's offer to transfer crude outside the Persian Gulf "suggest regional producers are finding ways to move more supply without relying on normal passage through the strait," Gelber & Associates says in a note. With U.S.-Iran negotiations stalled, "the decline reflects growing confidence in those alternative routes rather than a genuine normalization of Gulf flows." WTI settles down 0.2% at $83.40 for a 4.2% weekly decline. October Brent slips 0.4%, going off the board at $89.31 a barrel and down 5.4% on the week.(anthony.harrup@wsj.com)
1857 GMT - The continuing rally in wheat futures looks more like "weak shorts" exiting positions than any new developments around the Russia-Ukraine conflict which is keeping Black Sea wheat locked in, says Naomi Blohm of Total Farm Marketing. "I think we've priced in all the bullish news for the moment," she says. "For the short-term it feels extremely overdone and all it takes is one headline to say that Ukraine and Russia are going to do a one-week truce to get the grain moved out and this rally is over with." CBOT wheat rises 3.1%. (anthony.harrup@wsj.com)
1840 GMT - Gold futures settle lower after Fed Chairman Kevin Warsh expressed concerns about underlying inflation, prompting shorter-term Treasury yields to rise. The fundamental environment remains supportive for gold, "although the market has become increasingly sensitive to expectations surrounding U.S. monetary policy," XS.com senior market analyst Rania Gule says in a note. "The key question for investors and traders is not whether gold has pulled back, but whether this decline marks the beginning of a deeper bearish reversal or simply a temporary pause before the uptrend resumes." Front month gold settles down 2.87% to $4,478.10 a troy ounce. Silver falls 3.51% to $66.995 a troy ounce. (anthony.harrup@wsj.com)
1740 GMT - The number of rigs drilling for oil in the U.S. fell for a second consecutive week, while remaining well above their year-earlier level, according to data from oil services company Baker Hughes. Oil rigs were down by five this week at 447, or 35 more than a year ago and 36 more than at the start of the U.S.-Iran conflict. Rigs directed at natural gas increased by five to 132, and were 13 more than a year ago. (anthony.harrup@wsj.com)
1728 GMT - Soybean futures extend gains to four sessions as exports remain strong with more flash sales reported to China and unknown destinations. A Reuters report that the Trump administration is considering a 500 million barrel increase in biofuel quotas for 2027 to help offset the impact of an expected expansion of small refinery compliance waivers is also seen as supportive. Soybean growers have objected to the increased biofuel waivers, saying they benefit oil refiners at the expense of soybean producers. Soybeans are up 1.4% on CME. (anthony.harrup@wsj.com)
1654 GMT - Livestock futures are trading lower with the market showing little reaction to President Trump's saying he'll allow ranchers and farmers to process their own food to weaken the power of the country's largest meat-packing firms. It's a thoughtful gesture, but ranchers won't have the equipment to do it, and a question is would they want to add to their to-do lists, says Naomi Blohm of Total Farm Marketing. "That's a whole other level and of having to hire more people on their farm.It's not a market-mover because it's nothing that's realistic," she adds. Live cattle futures are down are down 0.8% on CME at $2.1125 a pound. Lean hogs are off 0.4% at 80.3 cents a pound.(anthony.harrup@wsj.com)
1433 GMT - Gold futures extend their decline after Fed Chairman Kevin Warsh expresses concerns about inflation in a speech at Jackson Hole, pushing Treasury yields higher. Analysts see any hawkish tone from the Fed as bearish for gold, which saw a recent recovery on Treasury Department plans to increase bond purchases. Most active gold is down 1.7% in New York. Silver falls 1.5%. (anthony.harrup@wsj.com)
1415 GMT - Private exporters reported 182,000 metric tons of soybean sales for delivery to China in the 2026/27 marketing year, along with 226,000 tons of soybeans to unknown destinations for the same period, the USDA says. The latest flash sales also include 200,000 tons of soybean cake and meal for 2026/27, of which 100,000 tons are destined for Germany and 100,000 tons for the Netherlands. CBOT soybean futures are up 1.2%. Soybean meal rises 2.6%.(anthony.harrup@wsj.com)
1358 GMT - Grains are broadly higher in early trading with December wheat testing a new contract high as the Russia-Ukraine war drags on, shutting in Black Sea exports. "Any peace talks between Russia and Ukraine are off the table for now and the issue is, no one knows if this will last a few weeks, a few months or longer," Cory Bratland of AgMarket.net says in a note. "What we do know is Russia and Ukraine are sitting on a bunch of wheat stocks and harvest for corn in Ukraine is just around the corner." U.S. prices are supported by the likelihood that those bushels will stay off the global market, he adds. CBOT wheat is up 2%. Corn gains 0.8% and soybeans are 0.9% higher. (anthony.harrup@wsj.com)
1324 GMT - U.S. natural gas futures are lower as the October contract debuts at the front of the curve. Late summer weather continues to support prices, with high to very high demand seen for the next two weeks, NatGasWeather.com says in a note. "Overall, weather patterns remain plenty hot enough the next 15 days and solidly to the bullish side," the forecaster says. However, "the weather data likely trended too hot and is susceptible to cooler trends in the midday data and/or over the weekend." Nymex natural gas is down 1.2% at $2.879/mmBtu.
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