The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.
0900 ET - Canadian dairy company Saputo could see a muted impact relative to other peers under President Trump's expanded tariffs on Canadian dairy products. Cross-border specialty-cheese exporters from, for instance, Quebec, could face immediate pressure from tariffs--but Saputo's extensive U.S. manufacturing footprint offers a potential structural buffer. The company operates numerous processing facilities across the U.S. and is one of the top producers of cheese as well as of extended shelf-life and cultured dairy products. Saputo generated over half of its revenue in the U.S. in its most recent quarter, and as a result, it could bypass the worst of the tariff pressure. Still, lingering trade friction complicates regional distribution and adds volatility across its broader supply chain. (adriano.marchese@wsj.com)
0900 ET - Canadian dairy company Saputo could see a muted impact relative to other peers under President Trump's expanded tariffs on Canadian dairy products. Cross-border specialty-cheese exporters from, for instance, Quebec, could face immediate pressure from tariffs--but Saputo's extensive U.S. manufacturing footprint offers a potential structural buffer. The company operates numerous processing facilities across the U.S. and is one of the top producers of cheese as well as of extended shelf-life and cultured dairy products. Saputo generated over half of its revenue in the U.S. in its most recent quarter, and as a result, it could bypass the worst of the tariff pressure. Still, lingering trade friction complicates regional distribution and adds volatility across its broader supply chain. (adriano.marchese@wsj.com)
0845 ET - The 2-year yield is rising as Brent crude crosses the $100-a-barrel threshold amid the escalating conflict in the Middle East. The U.S. military destroyed five Iranian oil tankers Tuesday, and Iran retaliated overnight with a ballistic-missile attack from Iranian territory into Jordan, with no casualties reported. The 2-year yield is at 4.43%, up from Tuesday's level of 4.40%. The 10-year yield is trading roughly at Tuesday's level of 4.81%. It's a light day for any major U.S. economic releases, and investors will be eyeing buyback details from the U.S. Treasury. (jessica.coacci@wsj.com)
0630 ET - Palm oil prices ended lower amid concerns over weak demand following a recent rally, said David Ng, a trader at Kuala Lumpur-based Iceberg X. However, stronger energy prices are capping downward pressure, he said. Ng expects palm oil to face resistance at 5,080 ringgit a ton and find support at 4,900 ringgit a ton. The Bursa Malaysia Derivatives contract for November delivery closed 9 ringgit lower at 4,967 ringgit a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0554 ET - Nestle's CFO Anna Manz sounded confident that the company is on the right track on its turnaround, Barclays analysts say in a note following the bank's Global Consumer Conference. The main takeaway is that the company has the right playbook, the analysts say. However, what is most important is execution, they add. Further proof is needed to show that Nestle is becoming a fundamentally different company, they say. Nestle shares are down 1.2% at 79.4 Swiss francs. (aimee.look@wsj.com)
0404 ET - Copper futures continue to hover around all-time highs after a multiday rally driven by concerns over potential U.S. tariffs and supply challenges at key mines worldwide. In early European trading, three-month futures on the London Metal Exchange are down 0.3% to $14,685 a metric ton after settling at $14,728 a ton in the previous session. "Copper therefore needs to hold above $14,600 a ton to preserve the breakout, while a loss of that level could expose the market to a sharper correction given the speed of the recent move," analysts at Sucden Financial say, adding that the narrowing gap between near-term and three-month copper prices suggests that immediate supply pressures are easing, even as the benchmark price remains near record highs. (giulia.petroni@wsj.com)
0320 ET - Gold prices rise as escalating attacks in the Middle East push oil higher, raising concerns over inflation and interest-rate hikes. In early European trading, New York futures are up 0.2% to $4,446.50 a troy ounce. According to CME Group's FedWatch tool, traders are now pricing in a 60% chance that the Federal Reserve will raise rates when it meets next week. "Trade barriers and geopolitical disruption can support bullion as investors seek defensive assets, but if those same developments push energy and goods inflation higher, expectations for tighter monetary policy can lift Treasury yields and increase the opportunity cost of holding nonyielding gold," says Naeem Aslam from Zaye Capital Markets. Investors now await August CPI and PPI data later this week, which could prove decisive in shaping expectations for the Fed meeting. (giulia.petroni@wsj.com)
0236 ET - Copper prices are likely to remain elevated as tariff uncertainties linger, ING commodities strategists say in a note. The metal has been hitting record high recently,driven by expectations of U.S. tariffs on refined copper imports. Markets are waiting for President Trump's decision on refined copper tariffs. The proposal is for a 15% duty from January 2027, before rising to 30% in 2028, they note. If approved, tariffs would keep drawing copper into the U.S. However, another exemption or delay could unwind the trade and ease supply tightness elsewhere. The three-month LME copper contract is 0.2% lower at $14,675.00 a ton. (amanda.lee@wsj.com)
0204 ET - Malaysia's 2027 budget could carry an election-friendly tone that benefits certain domestic-facing sectors, TA Securities analyst Kaladher Govindan says in a note. Likely priorities include rail infrastructure projects in Penang and Johor, flood-mitigation and water infrastructure, as well as AI, data centers and semiconductor manufacturing incentives. Cost-of-living relief is also probably on the table. Sectors including construction, property and utilities are expected to benefit the most from fiscal spending, he says. Technology and plantation sectors could also gain from targeted incentives to support long-term growth. TA Securities flags Gamuda, Tenaga Nasional, Telekom Malaysia, Nestle (Malaysia) and Sime Darby Property as among the companies that stand to gain. (yingxian.wong@wsj.com)
0121 ET - Barry Callebaut's CEO Hein Schumacher appeared notably relaxed on cocoa markets and El Nino risk at the Barclays Global Consumer Staples Conference, analysts say. Schumacher's tone stood in sharp contrast to investor concerns, the Barclays analysts add. The CEO's stance was that market reactions have become too sensitive following the cocoa crisis and the industry entering a second consecutive year of a cocoa surplus, according to the analysts. Callebaut's CEO doesn't see evidence that cocoa price volatility will prompt more retail chocolate price inflation, they add. (aimee.look@wsj.com)
2249 ET - Palm oil falls in early Asian trading. Production is expected to remain strong over the next three months as the market has entered its peak-crop period, AmInvestment Bank says in a note. Meanwhile, technical analysis suggests that an uptrend in crude palm oil futures may remain intact, with any short-term pullback likely to attract buying interest, it adds. AmInvestment Bank expects palm oil prices to face resistance at 4,996 ringgit a ton. The Bursa Malaysia Derivatives contract for November delivery is down 43 ringgit at 4,933 ringgit a ton. (yingxian.wong@wsj.com)
2214 ET - Iron ore is lower in early Asia trading, weighed by sluggish demand recovery due to poor mill profitability, Baocheng Futures analysts say in a note. The supply-demand landscape for iron ore hasn't improved significantly while steel mill production has stabilized and end-user consumption has rebounded from lows thanks to preholiday restocking, they say. Arrivals at Chinese ports have surged and overseas supply remains robust, pushing overall supply to high levels, they add. The most actively traded January iron ore contract on the Dalian Commodity Exchange is 0.6% lower at 735.5 yuan a ton.
Comments