The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.
1202 ET - Grains are slightly lower with traders focused on finding a price level that will stimulate demand and help rally the markets, says Brian Hoops of Midwest Market Solutions. Wheat in particular tried to rally on news that China had inquired about U.S. wheat, "but an inquiry and a purchase are different things and no purchases have been announced." If China does buy wheat, it should lift both wheat and corn "as it would be an indication that demand will improve at current price levels."Wheat is off 0.3% on CBOT and corn is down 0.7%.(anthony.harrup@wsj.com)
1133 ET - The USDA reports two new flash sales of soybeans for the 2026/27 marketing year, one for 165,150 metric tons and another for 132,000 tons, both to unknown destinations. Soybean export sales have had a strong start to the 2026/27 marketing year, but "strong harvest reports and a good start to the South American growing season have kept managed funds in liquidation mode," Doug Bergman of RCM Alternatives says in a note. Soybeans are up 0.1% on CBOT but on track for weekly and monthly losses.(anthony.harrup@wsj.com)
0904 ET - The mild weather outlook for the first half of November is keeping downward pressure on U.S. natural gas futures, with the December contract retreating further from the $3 level. "The oversized injection report yesterday, combined with inconsistent LNG feed gas data, sent the market tumbling yesterday and has December still trying to find its footing at the top of the gas board this morning," Tradition Energy's Gary Cunningham says in a note. The weather is providing little if any support, he says. "We are still in a very bearish trough with some slight support down around $2.85." Nymex gas for December delivery is off 2.5% at $2.878/mmBtu.(anthony.harrup@wsj.com)
0901 ET - Oil futures are higher in a jittery market ahead of next week's U.S. midterm elections. Attacks on tankers in the Strait of Hormuz, Houthi strikes on Saudi targets and a resumption of Ukrainian attacks on Russian refineries are driving the rise, Peter Cardillo of Spartan Capital says in a note. "The present situation is looking bleaker than ever, potentially putting additional pressure on President Trump to take action," he says. "The escalating tensions could push oil prices, even if only briefly, to new yearly highs." WTI is up 2.2% at $104.23 a barrel and Brent is 2.1% higher at $117.33 a barrel. (anthony.harrup@wsj.com)
0602 ET - Palm oil prices ended higher on stronger crude oil prices, which improved the outlook for biodiesel demand. However, concerns over elevated Malaysian inventories continued to limit gains, says David Ng, a trader at Kuala Lumpur-based Iceberg X. Ng expects CPO futures to find support around 4,600 ringgit a ton and face resistance at 4,800 ringgit a ton, with traders closely monitoring crude oil prices, soybean oil movements and fresh exports estimates for further directions, he adds. The Bursa Malaysia Derivatives contract for January delivery ended 66 ringgit higher at 4,682 ringgit a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0423 ET - Gold prices slide below the $4,000-a-troy-ounce mark as higher oil prices and sticky inflation fuel expectations that the Federal Reserve will raise interest rates again later this year. New York futures are down 1% to $3,993.10 an ounce. The U.S. central bank left the door open for future rate hikes if inflation pressures persist, while the latest U.S. data showed the PCE index--the Fed's preferred inflation gauge--rose last month. According to the CME FedWatch tool, traders are pricing in a 74% chance of a rate hike in December. Meanwhile, a tech-stock selloff raised the risk of investors offloading the metal to cover losses. "Heading into the weekend, traders will watch whether the U.S. technology sector selloff extends into today's session, potentially triggering broader deleveraging and liquidity-driven selling across markets, including precious metals," Saxo analysts say. (giulia.petroni@wsj.com)
0047 ET - Lithium miners are pressing ahead with expansions even as prices retreat. Outside of China, there's a feeling that "this is a short-term, sentiment-led dip that is not supported by fundamentals," says Benchmark's Adam Megginson. "The direction of travel right now is definitely toward supply expansion." For now, only the highest-cost suppliers--like those selling so-called direct shipping ore that is minimally processed and costly to transport--risk needing to cut back, he says. But he says others could face increased pressure if the price drop continues. Lithium carbonate is down by more than 20% since early September at $15,450 a metric ton, according to Benchmark. Spodumene concentrate is down by nearly 40% over the same period at $1,385 a ton. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
0021 ET - A pause on underground operations at Rio Tinto's Oyu Tolgoi copper mine due to a seismic event is unlikely to have long-term impact on production there, says Jefferies. Yet "a core question that this event generates is: What is the long-term sustainable rate of cave propagation, and does it align with the targeted production rate?" the bank says. The Oyu Tolgoi underground uses block caving, a process that stresses the surrounding rock. Jefferies wonders whether such events could change the way investors value different mining techniques. "For those generalists not frightened from the sector by mining disruptions, we do think that we will start to see further premiums paid for lower-risk mining methods," it says. Rio is down 1.7% in Sydney at 147.09 Australian dollars, amid a broad decline in materials stocks. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
2334 ET - Wilmar International's 4Q earnings could remain weak due to higher commodity prices, RHB Singapore Research analysts say in a note. The agribusiness group's 3Q core profit plunged by 25% on year. Earnings were weighed by the food products as well as feed and industrial products segments amid higher raw-material costs and weaker crushing margins. Looking ahead, the analysts expect the higher commodity prices to affect Wilmar's food product and crushing operations. RHB lowers its target price for the stock to 3.35 Singapore dollars from S$3.85, while maintaining a neutral rating. Shares are 3.2% lower at S$3.01.(amanda.lee@wsj.com)
2248 ET - Copper prices are lower in early Asian trade. Persistent inflationary pressures in the U.S. reinforce expectations for higher-for-longer interest rates, while weaker risk appetite weighs on market sentiment, Guangzhou Futures analysts say in a note. A sharp selloff in technology stocks is fueling concerns over returns on artificial-intelligence-related capital spending, damping risk appetite, they add. However, tight copper concentrate supply and smelter losses continue to provide underlying support, while domestic inventories decline, they say. Copper prices are likely to remain range-bound in the near term, with macroeconomic headwinds capping room for gains, they add.The three-month LME copper contract is down 0.2% at $14,327 a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
2242 ET - Iron ore prices are lower in early Asian trade amid weak demand. China's molten iron production has dropped to relatively low levels and have limited room for near-term recovery due to a steel production control in northern China, Nanhua Futures says in a research note. Meanwhile, iron ore supply are abundant as shipment levels remain high, they say. The accumulation of iron ore stocks at Chinese ports is slow, providing some support for iron ore prices, they add. The most actively traded January iron ore contract on the Dalian Commodity Exchange is down 0.6% at CNY676.0 a ton. (sherry.qin@wsj.com)
2237 ET - Palm oil rises in Asian trading, supported by expectations of tighter supplies next year amid El Nino-related weather risks and stronger domestic biodiesel demand in Indonesia, AmInvestment Bank says in a note. However, technical analysis suggests CPO futures' bearish momentum could persist, it adds. AmInvestment Bank pegs resistance at 4,682 ringgit a ton and support at 4,578 ringgit a ton. The Bursa Malaysia Derivatives contract for January delivery is 22 ringgit higher at 4,638 ringgit a ton.
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