The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.
0311 GMT - Palm oil falls in Asian trading amid market caution ahead of the Malaysian Palm Oil Board's October supply and demand report. Concerns about rising Malaysian inventories are keeping sentiment cautious, AmInvestment Bank says in a note. It expects crude palm oil futures to find support at 4,164 ringgit a ton and face resistance at 4,394 ringgit a ton. The Bursa Malaysia Derivatives contract for January delivery is 56 ringgit lower at 4,202 ringgit a ton. (yingxian.wong@wsj.com)
0306 GMT - Iron ore futures are higher in early Asian trade. However, prices are likely to remain under pressure and trade rangebound in the near term, says Tongguan Jinyuan Futures in a research note. Elevated global shipment levels have kept supply strong. This trend is unlikely to change in the near term as major iron ore miners are expected to expand output, limiting the potential for a sustained price rebound, they note. The most-traded iron-ore contract on the Dalian Commodity Exchange is 0.5% higher at CNY688.0 a ton.(tracy.qu@wsj.com)
0220 GMT - Copper prices are higher in early Asian trade. Improved market sentiment after a rebound in technology stocks, continued inventory drawdowns in China and elevated spot premiums are supporting prices, say Guangzhou Futures analysts in a note. Deeply negative copper concentrate treatment and refining charges and smelter production cuts are providing a floor. However, inventory accumulation overseas and subdued demand are limiting the upside, they add. Investors are now awaiting U.S. October CPI data for more hints on the macro environment. The three-month LME copper contract is up 0.4% at $13,951.00 a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0032 GMT - Gold edges lower in early Asian trade. The precious metal has gained some momentum as lower oil prices and a rebound in equity markets boosted risk appetite, ANZ Research analysts say in a note. Investors believe a Democratic-controlled Congress could bring more fiscal constraint, they say. Markets are awaiting the key U.S. October inflation data due Tuesday. A softer-than-expected reading could ease pressure on the Federal Reserve and support the non-interest-yielding asset, while a hotter report could boost the odds for the Fed to raise rates, analysts say. Spot gold is 0.3% lower at $4,128.14 an ounce. (sherry.qin@wsj.com)
2033 GMT - Livestock futures settle higher with cattle picking up after nine straight sessions of losses and lean hogs pulling up from contract lows. Pork cutout prices rise with carcass up 16 cents to $70.81 per hundredweight in the USDA's afternoon report, and boxed beef prices gained with choice up $1.95 to $362.74/cwt and select up 17 cents at $353.73/cwt. Live cattle rise 1% on CME to $2.152 a pound. Hogs gain 4.4% to 55.875 cents a pound. (anthony.harrup@wsj.com)
2028 GMT - Oil futures settle at their lowest level since Aug. 31 after President Trump said it was unlikely the U.S. would renew attacks on Iran as long as talks continue to progress. His comments added to hopes for a negotiated solution to the Middle East conflict. Recent price moves "highlight the breakdown of long-standing bullish structures across crude oil and energy charts, while short-term rebound risks remain in focus amid persistent geopolitical risk premiums," Forex.com market analyst Razan Hilal says in a note. Confirmation of a potential U.S.-Iran deal could trigger another wave of selling, while renewed escalation could revive a bullish setup, she adds. WTI settles down 4.4% at $86.85 a barrel and Brent falls 5.8% to $92.57. (anthony.harrup@wsj.com)
1943 GMT - U.S. natural gas futures post sharp gains as a coming cold spell, although expected to be short-lived, prompts a bout of short-covering. "This is one of those rallies where shorts bail out," says long-time natural gas trader John Woods. "We were essentially in an extended shoulder month," he says, but the weather is getting colder and the market has decided there will be a winter. "You're not going into the season short gas at $2.90 or $3," Woods adds. "I could see it going up to $3.50 relatively soon." Nymex natural gas settles up 7.3% at $3.2180/mmBtu. (anthony.harrup@wsj.com)
1808 GMT - Gold futures rise for the third time in four sessions with a retreat in oil prices easing some inflation concerns. "The big driver is oil," Phil Flynn of the Price Futures Group says in a note. "Lower oil reduces near-term inflation pressure, which is gold-friendly even if the longer-term rate path stays restrictive." Metals traders are probing support after the late-October washout, he adds. If metals can hold recent lows, the path of least resistance can stay higher, but if there's a break below "the search for the bottom resumes." Front-month gold settles up 1% in New York at $4,105.00 a troy ounce. Silver gains 1.5% to $52.564 a troy ounce. (anthony.harrup@wsj.com)
1710 GMT - Wheat futures are modestly lower as the market looks to this week's talks between Russia and Ukraine for a possible easing of tensions in the Black Sea. "Prospects for negotiations have removed some geopolitical premium from wheat even though Black Sea shipping and infrastructure risks remain substantial," Joe Davis of Futures International says in a note. "Any credible ceasefire or export-security agreement would likely increase expectations for improved regional grain flows," while failure could quickly restore some risk premium, he adds. Wheat is off 0.4% on CBOT.(anthony.harrup@wsj.com)
1704 GMT - Livestock futures are bouncing back on technical buying, with cattle picking up after nine straight sessions of losses and hogs rebounding from a contract low. "Last week was a rough week for cattle markets," Naomi Blohm of Total Farm Marketing says in a note. "Short-covering and technical buying is occurring." Live cattle are up 1.2% on CME at $2.167 a pound and lean hogs are 5.3% higher at 56.35 cents a pound. (anthony.harrup@wsj.com)
1631 GMT - Nutrien has several tailwinds that should provide a good set-up into 2027, according the RBC. Analyst Andrew Wong says Nutrien has "positive nitrogen segment fundamentals (strong pricing, improved ops), retail growth rebound, and steady potash markets." Wong also says that while the U.S.-Iran war remains a major swing factor for nitrogen prices, he is "overall constructive on nitrogen market fundamentals over the next 3-6 months." The dynamic should allow Nutrien to remain a "strong and steady cash generator," with 7%-8% yield and limited downside, he says. Wong also sees potential for excess cash flow to support an increased buyback pace next year. Nutrien is up 2% to C$102.85. (adriano.marchese@wsj.com)
1610 GMT - The USDA's November WASDE reports tend to provide the market with some comfort about the size of the year's crops, causing the focus to pivot to the demand side of the balance sheet as affected by growing conditions for corn and soybeans in South America, Arlan Suderman of StoneX says in a note. "Growing conditions are currently good for Argentina's corn and soybean crops, although it is still early," he says. Growing conditions for soybeans are also good in Brazil, although "that could still change as we move into December when pod fill begins in earnest." Corn is off 0.2% on CBOT and soybeans are off 0.1%.
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