The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.
0842 ET - Tamarack Valley's 3Q result was encouraging as the Canadian company again beat expectations on strong oil production, says Raymond James' Luke Davis. Production of 55,298 oil-equivalent barrels a day was in line with Davis's forecast and slightly ahead of the consensus call for 54,200. The analyst expects strength into 2027, with pro forma production volumes exceeding 80,000 barrels. Although the result was solid, Davis says investors likely are looking ahead to the Nov. 19 close of the Headwater acquisition as the next meaningful catalyst for the stock, which he expects will be accompanied by the 2027 capital budget, improved savings guidance and a refreshed five-year growth plan. (robb.stewart@wsj.com)
0611 ET - Palm oil prices ended lower, weighed by concerns over elevated Malaysian inventories and expectations of strong October production. Market sentiment continued to be pressured despite firmer crude oil prices, says David Ng, a trader at Kuala Lumpur-based Iceberg X. Ng expects CPO futures to find support around 4,650 ringgit a ton and face resistance at 4,800 ringgit a ton, with traders closely monitoring inventory levels and export demands for further direction, he adds. The Bursa Malaysia Derivatives contract for January delivery ended 14 ringgit lower at 4,687 ringgit a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0512 ET - Gold prices tick lower as investors await the Federal Reserve's interest-rate decision later on Wednesday. New York futures are down 0.2% to $4,066.50 a troy ounce, pressured by higher oil prices and a firmer dollar. "Markets are watching the outcome of the FOMC later today with no expectation of a hike but focus on whether commentary shifts to a more hawkish stance, and if there is any clarity on where rates head in 2027," says Soojin Kim from MUFG. Later this week, the release of PCE inflation figures is expected to provide further clarity. (giulia.petroni@wsj.com)
2315 ET - Iron ore prices across different contracts are mixed in early Asian trade. The most actively traded January iron ore contract on the Dalian Commodity Exchange is flat at 665 yuan a ton. Iron ore supply is abundant as shipments remain at elevated levels, Nanhua Futures says in a research note. While iron ore fundamentals continue to be weak, inventories fell slightly last week, it says. The brokerage thinks 660 yuan a ton will be the next support level for iron ore. (sherry.qin@wsj.com)
2242 ET - Palm oil rises in Asian trading amid a wider discount to rival vegetable oils following recent declines, supporting export demand, AmInvestment Bank says in a note. However, high inventory levels may continue to dampen market sentiment and limit potential price recovery, it adds. AmInvestment Bank pegs resistance at 4,770 ringgit a ton and support at 4,682 ringgit a ton. The Bursa Malaysia Derivatives contract for January delivery is 27 ringgit higher at 4,728 ringgit a ton. (yingxian.wong@wsj.com)
2236 ET - Copper prices fall in Asian trade, with the three-month LME contract down 0.2% at $14,442.00 a ton. Concerns over rising inflation and tighter monetary policy are weighing on sentiment, say Changjiang Futures analysts in a note. Expectations that the Fed will hold rates steady this week have firmed, while oil prices have pushed the implied probability of a December rate hike above 90%, adding pressure on copper. Meanwhile, potential U.S. tariffs on refined copper may provide a floor for prices, Changjiang says. Copper is likely to remain rangebound under pressure, it adds. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
2224 ET - Demand for Nestle (Malaysia)'s products is likely to remain resilient, driven by consumer spending skewed towards daily essentials and Budget 2027 cash assistance, says CIMB Securities analyst Walter Aw Lik Hsin in a note. Earnings growth should continue into 4Q, supported by resilient demand for daily essentials, festive sales and cost efficiencies, although higher input costs may weigh on margins, he reckons. Aw raises Nestle (Malaysia)'s 2026-2028 EPS estimates by 8.1%-17% to factor in a better margin outlook. CIMB raises Nestle's target price to 118 ringgit from 115 ringgit, while maintaining a buy rating. Shares are 4.9% higher at 98.88 ringgit. (yingxian.wong@wsj.com)
2115 ET - The impact on Nestle (Malaysia)'s costs may only emerge gradually in 2027, despite the adverse effects of El Nino on spot raw material prices, Maybank IB analyst Jade Tam says in a note. Lower cocoa and coffee prices are expected to continue supporting profit margins in coming quarters, while the company's advance purchasing strategy could delay the impact of higher raw material costs, she reckons. Higher government cash aid may also help support sales and partly offset higher costs next year, she adds. Tam raises Nestle's 2026-2028 earnings estimates by 15%, 5% and 2%, respectively, after 3Q earnings beat. Maybank raises Nestle's target price to 122.80 ringgit from 120.00 ringgit, while maintaining a buy rating. Shares are 2.5% higher at 96.66 ringgit. (yingxian.wong@wsj.com)
2015 ET - Gold hovers above the key $4,000 mark as markets await a raft of central bank decisions headlined by the Federal Reserve. With the Fed tipped to hold, focus is on any signaling on when the next rate hike might come as oil prices stay elevated and inflation high. A more hawkish tone would likely weigh on the non-interest-bearing metal. Fed Chair Warsh has made it clear he's not big on forward guidance, so traders will take cues from U.S. growth and inflation data too. The big unknown is once again the dollar, which continues to rebound, says Trade Nation's David Morrison. For now, gold seems to be consolidating, he says. Gold is up 0.3% at $4,068/oz. (fabiana.negrinochoa@wsj.com)Underlying demand conditions for titanium-dioxide pigment remain soft for a number of reasons, including conflicts, high energy and logistics costs, high interest rates and low consumer confidence, says Australian miner Iluka. It says pigment price increases have been announced in several regions in response to higher input costs, but adds that there has been some softening of domestic pigment pricing in China. "Feedstock markets remain highly competitive," Iluka says. "Over the longer term, the volume of feedstock supply from the industry is unclear, with a number of producers requiring support from lenders to continue operating and the future of some large production assets uncertain." Iluka is one of the world's top producers of titanium dioxide feedstocks. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
1847 ET [Dow Jones]--Conditions in the zircon market were broadly unchanged in 3Q, with weak demand in China offset by more-resilient markets in Europe, India and the U.S., says mineral sands producer Iluka. "Customers continued to prioritize working capital management and purchased largely on a just-in-time basis," Iluka says in a quarterly review. Realized prices did firm in recent months, it says. "Notwithstanding subdued demand fundamentals, ongoing supply constraints and limited availability of premium zircon supported contracted volumes and prices during the quarter," says Iluka. It reports a 3Q zircon sand price of US$1,685/metric ton, versus US$1,527/ton in 2Q. Iluka is the world's top zircon producer. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
1558 ET - U.S. natural gas futures pick up ahead of Wednesday's November contract expiry, with some help from slightly cooler weather forecasts, although the two-week outlook remains for above-normal temperatures. "The U.S. weather outlooks sit in contrast to both Europe and Asia who are each facing cold snaps next week," Gary Cunningham of Tradition Energy says in a note. "The colder weather in the LNG import regions could add further support to U.S. LNG export terminals remaining at maximum output as buyers rush to refill any gas used during the early chill." Nymex natural gas settles up3.7% at $2.697/mmBtu.
Comments