The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.
1105 ET - Live cattle futures are adding to the previous day's losses, while hogs bounce back somewhat from yesterday's big drop. "Major fund selling developed in the livestock markets Wednesday, which pulled live cattle down," AgResource says in a note. The USDA reports beef export sales for 2026 down 41% last week at 11,000 metric tons. Pork export sales rose 13% to 42,300 tons. Live cattle are off 0.4% on CME and hogs are up 2.4%. (anthony.harrup@wsj.com)
1049 ET - U.S. natural gas inventories rose more than expected last week, slightly expanding the surplus over the five-year average, according to the EIA's latest report. Net injections into storage were 80 billion cubic feet, up from the five-year average for the week of 77 Bcf and above the 70 Bcf estimate in a WSJ survey of analysts. The storage build put inventories at 3,724 Bcf, or 38 Bcf above the 2021-2025 average. The surplus was 35 Bcf the previous week. Nymex natural gas futures are down 3.3% at $2.932/mmBtu. (anthony.harrup@wsj.com)
1047 ET - Precious metals futures lose ground with silver at a fresh 11-month low and gold holding just above the $4,000 level. The Fed's 10-2 decision to hold rates steady reinforces expectations that borrowing costs could remain high, bolstering the U.S. dollar and increasing the opportunity cost of holding non-yielding assets, Naeem Aslam of Zaye Capital Markets says in a note. High oil prices also complicate the inflation outlook, he says. "Silver's dual role as a monetary asset and an industrial commodity makes it particularly sensitive to this environment, as restrictive financing conditions can weaken investment demand while simultaneously increasing costs for manufacturers." December gold is down 0.3% in New York at $4,039.40 a troy ounce. Silver falls 2% to $52.58 a troy ounce. (anthony.harrup@wsj.com)
1015 ET - Russia's winter grain planting has almost caught up with last year's pace on accelerated planting in the south, agriculture consultancy SovEcon says in a note. Farmers had planted 14.9 million hectares (36.8 million acres) as of Oct. 23, which was 1% below last year at this time, when two weeks ago planting had a lag of 10%, the firm says. SovEcon expects final planted area could be a little below last year. "Planting risks have eased, but weak farm economics could still weigh on the 2027 crop through lower input use, which could make yields more vulnerable to weather." (anthony.harrup@wsj.com)
1010 ET - Grains futures are lower in early trading with the market struggling to find a floor to the rout. "Everyone has been talking about picking bottoms this week, and each time they have gotten blown out of the water," Charlie Sernatinger of Marex says in a note. Bottom pickers need an indication that traders have given up hope of a rally as a signal for a corrective up move, he says. "Even then, we are talking about a correction, not an uptrend, with the overwhelming discretionary attitude being the desire to sell a rally." CBOT corn is down 0.7%, wheat is off 0.3% and soybeans are down 0.8%.(anthony.harrup@wsj.com)
1005 ET - The soaring high cost of beef continues to be a thorn in the side of Burger King franchisees, dragging their profits, but CFO Sami Siddiqui says he sees green shots of relief sprouting. Record beef inflation has created profitability headwinds for franchisees of the burger chain, and the effect has pushed out the timeline for store remodels despite an 8.4% surge in U.S. same-store sales. "With just beef costs and record high of beef, inflation has been a headwind to the system's profitability," Siddiqui says on the company's earnings call. "The good news is we're starting to see a little bit of relief on that front, and we expect to see a little bit more next year," he adds. (adriano.marchese@wsj.com)
0953 ET - Oil futures are lower with news of a U.S. effort to engage Iranian hardliners in talks tempering fears of conflict escalation following the U.S. midterm elections. The market is awaiting further news as a U.S. peace deal remains on the table, although "most traders still feel escalation of war is likely coming," Dennis Kissler of BOK Financial says in a note. WTI is down 2.6% at $100.12 a barrel and Brent is off 1.9% at $113.13 a barrel. (anthony.harrup@wsj.com)
0940 ET - U.S. natural gas futures resume their retreat with the December contract moving below the $3 level in its debut as the Nymex front-month. While storage numbers from the EIA due at 10:30 a.m. ET are expected to show a further decline in the inventory surplus, the warmer-than-usual weather seen extending well into November is keeping prices under pressure. Analysts in a WSJ survey forecast an inventory build of 70 Bcf for last week, smaller than the 77 Bcf five-year average for the week. Nymex natural gas is off 2.5% at $2.956/mmBtu.(anthony.harrup@wsj.com)
0924 ET - Tim Hortons is leveraging menu innovation to drive growth during the traditionally slower periods of the day. Restaurant Brands' coffee chain launched its matcha beverage in July, and CEO Josh Kobza says it's already paying dividends. "Not only does it appeal to younger guests, but over two-thirds of matcha beverages are sold in the P.M. day part, helping us capture more demand," Kobza says on an investor call. He also notes that almost 75% of matcha orders include another item, lifting average check size. The performance underscores Tim Hortons' strategy to expand beyond its traditional morning coffee and donut offerings into afternoon food and cold beverages, tapping new consumer demographics throughout more hours of the day. (adriano.marchese@wsj.com)
0703 ET - Glencore's target for EBIT above $5 billion in its trading unit looks conservative given the disruption across commodity markets, RBC Capital Markets analyst Ben Davis writes. Davis expects $5.6 billion for the year. Glencore remains the bank's top pick in the mining sector, especially ahead of a potentially tough winter that could push thermal coal prices higher, he says. Shares fall 1.9% to 531.40 pence.(adam.whittaker@wsj.com)
0611 ET - Palm oil prices ended lower, tracking weakness in both soybean oil and crude prices. Weaker oil prices reduce palm oil's appeal as a biodiesel feedstock. Meanwhile, markets have been worried about a further increase in Malaysian palm oil stocks, as its production hasn't shown any significant decline yet, says Anilkumar Bagani, commodity research head at Sunvin Group. The likelihood of falling Indonesian palm oil export taxes also added pressure on Malaysian palm oil prices, he adds. The Bursa Malaysia Derivatives contract for January delivery fell 69 ringgit to 4,616 ringgit a ton. (sherry.qin@wsj.com)
0449 ET - Copper price may continue to benefit from China's AI development, according to BofA Securities in a research note. Copper use in China data centers is likely to rise as China continues to increase investment in artificial intelligence, the bank says. The base metal's use in Chinese data centers could rise to 1.3 million metric tonnes by 2030 from 340,000 metric tonnes in 2025, the bank says. This is led by power delivery and interconnects, which are copper cables linking data center hardware, the bank says. With supply constrained, copper is the bank's top pick in the materials sector.
Comments