The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.
0303 GMT - Iron ore prices fall in Asian trade. A weak demand outlook and ample supply continue to weigh on the market, Baocheng Futures analysts write in a note. Chinese steelmakers' profitability remains under pressure, prompting mills to curb production and keeping ore consumption subdued, they say. Port arrivals in China have risen sharply, and shipments from major miners have rebounded, adding to supply pressure. Iron ore prices are likely to remain under pressure. The most actively traded January iron ore contract on the Dalian Commodity Exchange is 1.7% lower at 669.0 yuan a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0253 GMT - Palm oil falls in Asian trading, amid concerns over record-high inventories and strong October production, AmInvestment Bank says in a note. However, potential export tax cuts, biodiesel demand and weather-related uncertainties should help cushion prices against steeper declines, it says. AmInvestment Bank pegs resistance at 4,800 ringgit a ton and support at 4,700 ringgit a ton. The Bursa Malaysia Derivatives contract for January delivery is down 8 ringgit at 4,759 ringgit a ton.(yingxian.wong@wsj.com)
0233 GMT - Copper is lower in early Asian trading. Prices are likely to stay range bound in the near term, according to Nanhua Futures analysts in a commentary. "Uncertainty surrounding U.S. Federal Reserve's policy trajectory, volatility in the U.S. dollar index, and pending U.S. copper tariff policies could amplify price fluctuations," they note. The three-month LME copper contract is 0.6% lower at $14,274.50 a ton. (tracy.qu@wsj.com)
0102 GMT - Crude palm oil prices are expected to stay above 4,600 ringgit a ton in November, supported by seasonal production declines and steady biodiesel demand, Malaysian Palm Oil Council says in a note. India's recent cut in vegetable oil import duties could also spur a recovery in palm oil imports in coming months, it says. Downside risks include lower energy prices and weaker-than-expected food sector demand for vegetable oils amid inflationary and economic pressures, it adds. Palm oil production is estimated to have peaked in September and is expected to trend lower seasonally over the next five months, MPOC says.(yingxian.wong@wsj.com)
0019 GMT - Gold declines in early Asian trade. The precious metal is likely pressured by rising energy costs and uncertainty surrounding the Federal Reserve's coming decision, says XS.com's Antonio Di Giacomo in a commentary. The decline brings prices closer to $4,100, a key support level for the short-term outlook, the analyst says. Treasury yields and the dollar's performance also stand as obstacles to a sustained recovery in gold. "When debt instruments offer higher returns, the opportunity cost of holding gold, which pays no interest, increases," he says. Still, geopolitical risk could offer potential support for gold, as any escalation can drive safe-haven buying, he adds. Spot gold is down 0.4% at $4,123.25 an ounce. (megan.cheah@wsj.com)
2025 GMT - U.S. natural gas futures extend their slide to four sessions with mild near-term weather forecasts keeping demand expectations at bay. "Heating demand is beginning to increase seasonally, but forecasts still lack the sustained cold needed to keep consumption elevated through the end of October," Gelber & Associates says in a note. "Production restrictions are still helping keep balances tighter, but their impact depends on how long they last and whether LNG consumption holds up." Thursday's EIA storage report is expected to show a 10th straight below-normal build, which would reduce the inventory surplus over the five-year average to 35 Bcf from 45 Bcf the week before. Nymex natural gas settles down 5.8% at $2.790/mmBtu. (anthony.harrup@wsj.com)
1956 GMT - Crude oil futures end the session mixed with December WTI falling 0.7% to $97.15 a barrel in its debut as front month, and Brent settling practically unchanged at $108.82. Optimism over the amount of crude making out of the Persian Gulf via the Strait of Hormuz and alternative routes is contained by continuing attacks on shipping in the region. The EIA reported a bigger-than-expected3.1 million barrel weekly draw in U.S. crude oil stocks, while distillate inventories rose unexpectedly by 1.7 million barrels. Gasoline stocks fell by 3 million barrels. (anthony.harrup@wsj.com)
1936 GMT - Live cattle futures on the CME settle up 0.4% to $2.3105 a pound. Movement in boxed beef prices continues to be the main indicator driving the futures contract. With November around the corner, wholesale buyers of meat are starting to stock up for the holiday season. "Wholesalers, including grocery stores and restaurants, are buying the high priced cuts [like] ribs and loins and stocking up for the December holiday parties, Christmas Eve, Christmas and New Year's Eve," says ADM Investor Services in a note. Lean hog futures close down 1.8% to 67.95 cents a pound. (kirk.maltais@wsj.com)
1828 GMT - Gold futures settle higher after oil prices give up early gains and the U.S. dollar slips. High oil prices have been a key driver of weakness in gold given the risk to inflation, Antonio Di Giacomo of XS.com says in a note. "Inflation can encourage demand for wealth preservation, but it can also support higher interest rates," he says. "Concerns about a restrictive monetary policy response are limiting the metal's appeal." Front-month gold edges up 0.2% in New York to $4,130.50 a troy ounce. Silver settles down 0.5% at $57.422 a troy ounce. (anthony.harrup@wsj.com)
1721 GMT - Stocks of ethanol in the U.S. rose week-over-week, according to data from the EIA. They jumped 616,000 barrels for the week ended Oct. 16, to 24.56 million barrels. Analysts surveyed by Dow Jones this week had anticipated stocks to land anywhere from 23.7 million barrels to 23.9 million barrels. Average daily production also rose, climbing 23,000 barrels a day to 1.033 million barrels a day. Most-active corn futures on the CBOT are flat midday, at $4.62 a bushel. (kirk.maltais@wsj.com)
1703 GMT - Gold futures are modestly higher as crude oil prices slip into negative territory, while the U.S. dollar and yields are little changed. "Elevated oil prices continue to complicate the monetary policy outlook, although weakness in the U.S. dollar and Treasury yields has limited the downside in precious metals," Kaynat Chainwala of Kotak Neo says in a note. In the absence of major U.S. economic data, "movements in the bond market and developments in crude oil prices are likely to guide trading over the next few sessions." Gold for December delivery is up 0.2% in New York at $4,149.80 a troy ounce. Silver is down 0.5% at $57.695 a troy ounce. (anthony.harrup@wsj.com)
1449 GMT - One of the few bright spots in farmer budgets in recent years has been the value of the land farms sit on. Farmland values roughly doubled from 2010 to 2025, according to data from the USDA. Notable states that have seen farmland value appreciate the most include New York, Iowa, Ohio, Florida, and California. States like Texas have not seen a similar uptick. Farmers who are lacking in working capital can often leverage their land to obtain operating loans big enough to field the next year's crops. Farm real estate accounts for 83% of total farm asset value, says the USDA.
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