The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.

0858 ET - Oil futures rise and on track to the end an up-and-down week moderately higher. Fluctuating perception of supply risk from conflicts in the Middle East and views that the market will move into a surplus in 2025 on slower demand growth and higher output have kept crude rangebound. WTI stabilizing above $70 a barrel is "a good sign that selling is abating after absorbing most of the future factors--negative demand and higher OPEC+ production," Spartan Capital's Peter Cardillo says in a note. WTI is up 1.3% at $71.08 a barrel and Brent is up 1.2% at $75.24 a barrel. (anthony.harrup@wsj.com)

0616 ET - Palm oil ended lower, tracking Wall Street's mixed session overnight and the decline in crude prices, Kenanga Futures analysts said in commentary. Profit-taking also contributed to the price decline, said David Ng, a trader at Kuala Lumpur-based proprietary trading company Iceberg X. Ng sees CPO support at MYR4,500 and resistance at MYR4,680. The Bursa Malaysia Derivatives contract January delivery ended MYR70 lower at MYR4,533 a ton. (tracy.qu@wsj.com)

0408 ET - Gold futures fall 0.3% to $2,740.40 a troy ounce. The precious metal had peaked at $2,772.60 an ounce on Wednesday, followed by a sharp sell-off. This price action reflects a tug-of-war between profit-taking short-term investors, and persistent demand from investors committed to buying gold on dips, says Pepperstone's Ahmad Assiri. The recent dip is likely to be a temporary price-consolidation phase, and partially reflects rising bond yields, Assiri says in a note. But the pullback in prices has also proven gold's ability to attract fresh investment demand. The upcoming U.S. election continues to loom over markets, stoking fresh uncertainties. Geopolitical tensions are also bubbling, keeping the longer-term outlook for safe-haven assets like gold positive, Assiri says. (joseph.hoppe@wsj.com)

0328 ET - Copper prices are likely to rise less than expected for the remainder of this year, CCB International's Helen Lau says. The average year-to-date copper price has fallen more than CCB anticipated, Lau says. She notes that prices slid 17% from mid-May to mid-August. Recent China stimulus policies will offer relief, but will require time before affecting economic fundamentals, she says. CCB cuts its copper price forecast for 2024 to 2026 by 16%, 14% and 13% respectively. Copper is flat at US$9,509.50 a ton. (tracy.qu@wsj.com)

0215 ET - Expansions at copper mines across the Democratic Republic of Congo support higher output in Africa, Oxford Economics Africa says. However, the country's weakening currency risks curbing gains despite improved global prices, it adds. The continent's copper output is expected to rise 8% to 4 million metric tons this year and increase to 4.4 million tons in 2025, accounting for about 20% of the global production. Output from Congo rose 11% in the first eight months of the year, Oxford notes. That was driven by increased production at CMOC's Kisanfu mine and Tenke Fungurume mine as well as Ivanhoe Mines' Kamoa-Kakula complex, it says. Congo and Zambia account for the bulk of Africa's copper output. "We still expect copper prices to trend higher over the short term, supporting the DRC's external position." (Nicholas.Bariyo@wsj.com;@Nicholasbariyo)

2258 ET - The recent strength in palm oil prices may be short-lived but still presents an upside risk to BMI's 2024 forecast of MYR3,850/ton. Prices have surged to multiyear highs due to reduced export supply, strong edible-oil markets and a weaker ringgit, BMI says in a note. For 2025, BMI projects average price palm oil at MYR3,650/ton. Key upside risks to BMI's forecast include Indonesia's higher biodiesel mandates, which could lower exports; potential reductions in Indian import tariffs; and global oil price fluctuations driven by geopolitical tensions. The Bursa Malaysia Derivatives contract for January delivery is up MYR23 at MYR4,626 a ton. (yingxian.wong@wsj.com)

2246 ET - Palm oil prices are higher in early Asian trading, supported by weaker output estimates in Indonesia and Malaysia, AmInvestment Bank says in a research note. The two countries together account for more than 80% of the global palm oil supply, it notes. Technical analysis suggests that crude palm oil futures could maintain their strong momentum and continue to trade higher. However, the bank advises traders to watch for "a much-needed correction" and recommends shorting if the price breaks above MYR4,680 a ton. AmInvestment Bank pegs support for CPO futures at MYR4,527 and resistance at MYR4,658. The Bursa Malaysia Derivatives contract for January delivery rises MYR23 to MYR4,626 a ton. (yingxian.wong@wsj.com)

2235 ET - Iron ore gains in Asian trade as markets await China's upcoming legislative meeting for more stimulus measures and amid ongoing improvement in demand. The most-traded iron-ore contract on the Dalian Commodity Exchange is 2.5% higher at CNY767.0 a ton. However, there is a broad oversupply in the iron ore market, with Chinese port stocks remaining 40% higher than this time last year due to elevated arrivals, Goldman Sachs analysts say in a note. Prices could be further weighed by surging shipments from India and Australia, GS adds. (sherry.qin@wsj.com)

2201 ET - Nestle (Malaysia) may continue facing challenges with commodity price volatility and weakening demand, Hong Leong IB analyst Syifaa' Mahsuri Ismail says in a note. Sales recovery could be slow amid ongoing boycotts of Israel-linked companies, though Nestle aims boost demand through core product expansion and innovation, she adds. The analyst cuts Nestle's 2024-2026 earnings estimates by 19%, 12% and 11%, respectively, after its 3Q results disappointed. Nestle's high valuation of 49.6x P/E ratio for 2024 seems hard to justify compared with its parent company's P/E ratio of 18.5x, she adds, noting pressure from earnings and sentiment amid boycotts. Hong Leong cuts its target price for Nestle to MYR80.00 from MYR101.00 and maintains its sell rating. Shares are 0.4% lower at MYR102.10. (yingxian.wong@wsj.com)

2153 ET - Copper rises in early Asian trade. Base metals have traded higher recently as supply-side issues stayed in focus, ANZ Research analysts write in a note. Weak treatment charges amid a tight copper concentrate market are raising concerns in China, the analysts say. Ge Honglin, chair of the China Nonferrous Metals Industry Association, has said China should impose curbs on its copper industry to halt a rapid expansion that's already triggered a profit collapse across the sector. The three-month LME copper contract is 0.6% higher at $9,560.00 a ton. (amanda.lee@wsj.com)

2148 ET - Nestle (Malaysia)'s earnings will likely remain under pressure as weak consumer demand persists, Maybank IB's Jade Tam writes. Tam lowers Nestle's 2024-2026 earnings estimates by 10%, 10% and 9%, respectively, after 3Q earnings disappointed. However, she expects Nestle to benefit from government measures aimed at boosting disposable income. A stronger ringgit could also help ease some cost pressures, she adds. Maybank upgrades its rating for the stock to buy from hold, while cutting its target price to MYR111.50 from MYR120.00. Shares are 0.3% lower at MYR102.20.(yingxian.wong@wsj.com)

2023 ET - Gold edges lower in the early Asian session due to a possible technical correction. Front-month Comex gold futures for October delivery settled Thursday at the second-highest close in history. Gold remains supported by its safe-haven appeal amid lingering geopolitical tensions in the Middle East, says Terence Hove, a strategist at Exness, in an email. Also, "uncertainty surrounding the upcoming U.S. presidential election, coupled with polls suggesting a potential Trump victory, has heightened demand for gold as a hedge against possible market volatility," Hove adds. Spot gold is 0.1% lower at $2,734.04/oz. (ronnie.harui@wsj.com)

(END) Dow Jones Newswires

October 25, 2024 09:15 ET (13:15 GMT)

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