The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.
0912 ET - U.S. natural gas futures start the week higher, continuing their recent pattern of alternating gains and losses from one day to the next. "Domestic demand is falling into seasonal norms with overnight heating demands in the Northeast in the high teens, while power and industrial sector consumption remains relatively strong on a combination of electrification demands and lingering heat in some areas," Gary Cunningham of Tradition Energy says in a note. Steady supply is met with strong LNG feedgas flows and pipeline exports to Mexico, which together take up about 25% of supply, he adds. Nymex natural gas is up 1.4% at $3.158/mmBtu. (anthony.harrup@wsj.com)
0912 ET--Americas Gold & Silver's 3Q production in at its Idaho mine Galena was below forecasts as the company continues to focus on debottlenecking activities and waste development for the ongoing ramp up, says TD Cowen's Wayne Lam. "Q3 output was below consensus on continued ramp up at Galena, offset by stronger production from Cosala driven by higher grades from the heart of the EC120 Zone," Lam says. The analyst says this ramp-up at Galena will continue to be an ongoing theme. "FY guidance was reiterated and we continue to view focus on ramp up execution ahead," Lam adds. (adriano.marchese@wsj.com)
0616 ET - Palm oil prices closed lower, weighed by softer crude oil prices and concerns over elevated Malaysian inventories, despite support from firmer Dalian vegetable oils and expectations for stronger Indian demand ahead of Diwali, says David Ng, a trader at Kuala Lumpur-based Iceberg X. Looking ahead, improving export demand could help cushion further downside, although high domestic stocks might continue to limit any meaningful recovery, he adds. The Bursa Malaysia Derivatives contract for December delivery fell 3 ringgit to 4,766 ringgit a ton.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
0351 ET - Gold prices rise in early European trading, supported by falling oil prices and as traders assess the U.S. interest-rate outlook for this year. "The market remains caught in a tug of war between short-term selling pressure from macro-focused traders and demand from less interest-rate-sensitive investors seeking a safe haven amid multiple geopolitical and fiscal tensions," analysts at Saxo Bank say. According to CME Group's FedWatch tool, traders see only a 15% chance of a rate hike this month, while for December they see a nearly 89% probability. New York gold futures are up 0.5% to $4,203.30 a troy ounce. (giulia.petroni@wsj.com)
0133 ET - Southeast Asian plantation sector prospects are likely to remain subdued in the absence of near-term catalysts for crude palm oil prices amid concerns over transboundary haze, says Maybank analyst Ong Chee Ting in a note. Malaysian planters could be preferred amid a lack of details about Indonesia's new agrarian reform law, but elevated palm oil inventories in Malaysia may limit price gains, he says. Also, while El Nino could reduce output in 2027, its impact may be offset by higher operating costs and taxes, especially for Indonesian producers, he reckons. Maybank maintains a neutral rating on the Southeast Asian plantation sector, and pegs SD Guthrie, Sarawak Oil Palms and Genting Plantations as top buys. (yingxian.wong@wsj.com)
2306 ET - Palm oil rises amid cautiously bullish sentiment, says AmInvestment Bank in a note. Technical indicators suggest CPO futures retain an upward bias, but elevated Malaysian palm oil inventories and mixed trends in competing vegetable oil and energy markets could keep CPO futures consolidating intraday near resistance levels, it adds. AmInvestment Bank pegs resistance at 4,809 ringgit a ton and support at 4,725 ringgit a ton. The Bursa Malaysia Derivatives contract for January delivery is up 22 ringgit at 4,791 ringgit a ton. (yingxian.wong@wsj.com)
2246 ET - Iron ore prices rise in early Asian trade. Pressure on mining margins could limit further price declines, Industrial Futures analysts say in a note. However, supply pressures are building as seaborne shipments rise seasonally and port inventories increase from both a year and a month earlier, they add. Expectations of rising supply and weakening demand continue to weigh on the market, though lower prices could make it more sensitive to supportive news, they add. Iron ore is likely to trade in a range, and warn that betting on further declines is becoming riskier at current prices. The most actively traded January iron ore contract on the Dalian Commodity Exchange is 1.5% higher at CNY684.0 a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
2207 ET - Base metals rise in early Asian trade. Sentiment in the sector has improved following a volatile week after hot U.S. inflation data and the selloff in AI stocks weighed on risk appetite, ANZ Research writes in a note. Focus has returned to supply-side issues, with copper supply under threat due to labor strikes in Chile, ANZ says. The threat of U.S. tariffs on copper imports is also tightening supplies in the international market, with metal continuing to flow into U.S. warehouses, ANZ adds. The three-month LME copper contract is up 0.2% at $14,433.50 a ton, nickel is up 0.5% and aluminum is 0.3% higher. (kimberley.kao@wsj.com)
2140 ET - Gold edges higher in Asian trade. Traders are likely weighing the prospect of further Federal Reserve rate increases this year following a run of hotter-than-expected U.S. inflation data, says Commonwealth Bank of Australia's Trent Saunders in a note. Spot gold rises 0.1% to $4,170.90 a troy ounce. (megan.cheah@wsj.com)
1829 ET - Deep Yellow's bull at Jefferies cuts its price target by 37% to A$1.20/share after the aspiring uranium miner delays a final investment decision on its Tumas project. Deep Yellow decided to wait because equity and credit markets are too weak right now. Analyst Daniel Roden now assumes Deep Yellow proceeds with Tumas in June 2027, with first ore produced in October 2029. "Deferral preserves financing flexibility, although schedule slippage, capital escalation and higher operating costs erode net present value," Jefferies says. "We expect updated project metrics, funding and FID within 12 months, subject to market conditions." Deep Yellow ended last week at A$0.82. (david.winning@wsj.com; @dwinningWSJ)
1824 ET - While PLS Group was expected to proceed with the P2000 lithium project, Jefferies notes a final investment decision was accelerated relative to prior company commentary. There weren't many shocks in PLS's announcement. Capex of A$1.9 billion and a timeline for maiden production of the September quarter of 2029 were largely in line with Jefferies's expectations. "PLS continues to demonstrate its countercyclical investment strategy with a development approach centred on being in the market to reap outsize benefit from price fly-up scenarios," analyst Mitch Ryan says. Jefferies retains a buy call, but trims its price target on PLS by 9.1% to A$5.00/share. PLS ended last week at A$2.98.
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