The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0245 GMT - Palm oil rises in Asian trading, with firm market sentiment and expectations of improving export demand, says David Ng, a trader at Kuala Lumpur-based Iceberg X. However, elevated Malaysian inventories and robust October production continued to cap price gains, he says. Ng expects CPO prices to remain range-bound in near term, pegging resistance at 4,800 ringgit a ton and support at 4,600 ringgit a ton. The Bursa Malaysia Derivatives contract for January delivery is up 5 ringgit at 4,797 ringgit a ton. (yingxian.wong@wsj.com)
0234 GMT - Iron ore prices rose in early Asian trade. Analysts remain concerned over steel demand, says Baocheng Futures analysts in a note. The outlook for Chinese steel production may also limit gains, they add. Iron ore prices are likely to trade with a firmer bias in the near term, while remaining sensitive to shifts in demand expectations and broader market sentiment, they say. The most actively traded January iron ore contract on the Dalian Commodity Exchange is 0.15% higher at CNY672.0 a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
2350 GMT - Gold holds steady in Asian trade. Selling pressure on the yellow metal has eased, but buying interest remains insufficient to establish a new direction, XS.com's Linh Tran says in a note. "The market is finding a balance between demand for gold accumulation and pressure from high interest rates," the market analyst adds. A higher interest-rate environment typically weighs on nonyielding assets like gold. She expects continued consolidation in gold prices in the near term, with the Fed's October meeting and a U.S. inflation report likely to test this view. Spot gold is flat at $4,025.56 an ounce.(megan.cheah@wsj.com)
2322 GMT - Whitehaven Coal's share price falls 2.1% to A$7.49 early, underperforming Australia's benchmark S&P/ASX 200 index, as investors focus more on port disruptions than a strong quarter operationally. Whitehaven reported 1Q equity sales of 6.0 million tons of coal. That missed Ord Minnett's expectations by 8% and reflected port disruptions in Queensland and New South Wales. "These temporary port disruptions at third-party infrastructure are outside management's control, but we would expect these to resolve over coming quarters," Ord Minnett says. Whitehaven's inventory built by 1.0 million tons in 1Q. Management expects this to unwind in 2Q, improving cash flow. "Overall, this is a strong quarter operationally, though we expect the temporary logistics impacts and increase in net debt to weigh on sentiment today," Ord Minnett says. (david.winning@wsj.com; @dwinningWSJ)
Fortescue's unresolved talks with China's central iron-ore buying agency keeps Jefferies at neutral. "Cost headwinds, and the obvious downside risk to sales volumes and pricing for the year prevent us from turning more constructive despite the recent share price underperformance and net present value support," says analyst Mitch Ryan. Fortescue appears ready to reduce volumes in the short term to defend its long-term margins. The implication is the CMRG talks don't reflect a fair and proper market. "Time will tell who gives the most," Jefferies says. With most of the inventory build occurring in China at port, stockpiles can be run down relatively quickly if the dispute is resolved. Still, Jefferies lowers realizations to 80% for the remainder of the year to account for such a discount. (david.winning@wsj.com; @dwinningWSJ)
Coronado Global Resources mixed the good with the bad in its latest quarter. Coronado's Curragh mine in Australia achieved its strongest quarter for run-of-mine coal production since 2020, says Jefferies. That lifted 3Q Ebitda to US$44 million. However, Coronado cut its annual production target and raised estimates for mining costs on setbacks at its U.S. and Australian mines. It cited "recent Buchanan geology issues, slower than expected Mammoth ramp-up and CHPP throughput, as well as unfavorable FX and diesel cost year-to-date." Analyst Daniel Roden says Coronado needs to demonstrate better processing and underground execution. Jefferies stays at hold. (david.winning@wsj.com; @dwinningWSJ)
Silver futures are falling and on track for their lowest settlement since November 2025. "We believe the latest weakness reflects mounting pressure from rising U.S. Treasury yields, a stronger dollar, and renewed inflation concerns as Brent crude climbs above $110 per barrel," Naeem Aslam of Zaye Capital Markets says in a note. That is also true of gold as a stronger dollar and higher interest rates affect precious metals, but "silver faces additional pressure because its industrial applications expose prices to weaker manufacturing activity and slowing economic demand." Silver for December delivery is off 4.5% in New York at $55.11 a troy ounce. Gold is down 2.1% at $4,062.40 a troy ounce. (anthony.harrup@wsj.com)
1505 GMT - While Canada has ambitious infrastructure goals, Mullen Group sees mining as the only sector delivering growth. Speaking to investors, Chair and Senior Executive Murray Mullen notes that capital will eventually flow toward Canada's major infrastructure builds, the timeline isn't certain. "This is Canada," Mullen says. "It sometimes takes a long time to get these projects off the drawing board and to shovels working." Until then, Mullen expects the company will be mindful of its capex until projects are confirmed. As a result, he says the logistics company plans to hold back on major capital expenditures until projects are officially approved, continuing to direct capital toward active growth areas like mining. (adriano.marchese@wsj.com)
1314 GMT - Stable U.S. labor market supports a Fed hold on interest rates, helping to keep a floor under gold prices, as weekly jobless claims slip. "The US$4,000 level is now more than a chart line," Capital.com's Monte Safieddine says in a note. "Speculators are trying to defend it because a clean break below would signal that the market has stopped pricing rate relief and started pricing sticky inflation, elevated yields, and a stronger dollar," he says. Rising oil prices, which would normally support safe-haven demand for gold, could revive inflation fears and delay Fed easing. "That is a difficult cocktail for bullion," Safieddine says. Gold is down 1.3%, at $4,083.
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