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

1609 ET - PepsiCo's acquisition of prebiotic soda brand poppi represents an attractive sub-category, with the deal looking well-positioned from a regulatory risk perspective, Piper Sandler analysts say in a research note. The non-alcoholic, prebiotic category is expected to continue gaining shelf space, as seen with Walmart after it recently converted its 'emerging beverage brands' section to modern sodas. Poppi may have potential international upside too, as it is currently only sold in the U.S. Meanwhile, PepsiCo's branded beverages are sold in over 200 countries through its distribution network, the analysts add. PepsiCo shares rise 1.9% to $151.36. (sabela.ojea@wsj.com; @sabelaojeaguix)

1510 ET - Crude oil futures fell to their lowest in two years earlier this month, but analysts think that the downturn seen for oil may have already found its low point. Elevated geopolitical tensions, including U.S. strikes on Yemen over the weekend and a talk between President Trump and Russian President Putin scheduled for tomorrow possibly impacting the near future of the Russia-Ukraine conflict, says BOK Financial in a note. Crude oil rose 0.6% to $67.58 a barrel Monday, making it six out of the past eight trading sessions that crude oil have finished higher. Brent crude settled up 0.7% to $71.07 a barrel. (kirk.maltais@wsj.com)

1508 ET - A discussion that's scheduled to be held between President Trump and Russian President Putin is seen as a potential gateway to a ceasefire in the Russia-Ukraine war. Should some sort of agreement be made, Russian natural gas might be able to soon re-enter into the European market. "A deal would green light the flow ofcheap Russian natural gas into the Euro zone and put pressure on price," says Robert Yawger of Mizuho Securities USA in a note. However, Yawger cautions, a temporary ceasefire does not mean that a longer-term peace agreement is in the cards as well. Natural gas futures fell 2.1% to $4.0180 per mmBtu, making it four out of the past five trading sessions that natural gas futures have dropped. (kirk.maltais@wsj.com)

1501 ET - PepsiCo's bid for Poppi is the latest in a string of capital put toward "better-for-you" brands, say TD Securities analysts in a research note. PepsiCo agreed to buy the prebiotic soda brand for $1.95 billion. The analysts note while PepsiCo had planned to launch a functional soda under its Soulboost brand, Poppi's first mover advantages including its popularity with consumers were highly valuable to them. They add that PepsiCo has spent about $3 billion of capital on the Sabra buyout and the $1.2 billion acquisition of snack brand Siete, moves that come in tandem with growing scrutiny of ingredients found in American grocery products and a broader focus on healthier foods among consumers. (denny.jacob@wsj.com; @pennedbyden)

1454 ET - PepsiCo's deal to acquire prebiotic soda brand poppi for $1.95 billion can accelerate the beverage giant's topline performance and volume growth in its beverages North America division, Citigroup analysts say in a research note. The acquisition also offers further distribution opportunities in gas and convenience, and away-from-home channels, the analysts say. Poppi has been growing dollar sales at an average of more than 150% over the last 52 weeks, and has seen growth of 170% and 230% in 2024 and 2023, respectively. The analysts estimate 70 basis points to 90 basis points contribution to the unit's growth from Poppi. PepsiCo shares rise 2% to $151.59.(sabela.ojea@wsj.com; @sabelaojeaguix)

1436 ET - PepsiCo acquisition of Poppi supports the view that the company will do more tack-on M&A of emerging brands to boost its slowing growth rate, say TD Securities analysts in a research note. PepsiCo agreed to buy the prebiotic soda brand for $1.95 billion, a move that coincides with flat sales for traditional sugary drinks. The analysts believe the deal makes sense as they see PepsiCo's North American beverage business providing another boost to Poppi's distribution and business they believe "functional soda" is becoming a mainstream segment of the market with sustainable appeal. "We find it encouraging to see PepsiCo to invest in PBNA to improve its growth rate, as we believe underinvestment over the past few years has resulted in share losses," the analysts say. (denny.jacob@wsj.com; @pennedbyden)

1340 ET - The National Oilseed Processors Association says in its latest data that the production rate for soybean oil is down from last month, this while inventories of soyoil are higher from the previous month. NOPA says in its monthly report that stocks are now 1.5 billion pounds for February 2025, up from 1.27 billion pounds reported for January. The report's results are not supportive for the soy complex, says Matt Zeller of StoneX in a note following the report's release. "Bean oil dragging on complex because soyoil stocks continue to rise amid a lack of biomass diesel production," says Zeller. Most-active soybeans trading on the CBOT -- which are influenced by factors that move soyoil and soymeal futures -- are down 0.1%. (kirk.maltais@wsj.com)

1337 ET - The sustainability of wheat production in the U.S. is seen as improving over the past 40 years, according to a study from the U.S. Wheat Associates. The study says that the greenhouse gas emissions of wheat grown in the U.S. has decreased 33% in that time. This comes as U.S. wheat yields have improved 25% in that 40-year span. The report says that the reduction in greenhouse gases comes as farmers improve the efficiency of its application efficiency, while water usage has been reduced by 46%. Wheat futures are leading the row crop complex higher in trading, with the most-active contract up 2.4%, while corn is up 0.1% and soybeans fall 0.2%. (kirk.maltais@wsj.com)

1321 ET - Cotton futures on the ICE are down 0.7%at 66.9 cents a pound. Cotton has rebounded over 6% after finding a multi-year low of 63 cents a pound - the lowest since August 2020, on March 4. Short-covering was the primary driver for the turnaround of the past two weeks, says Austin Schroeder of Price Futures Group in a note. But that turnaround looks to be stalling, Schroeder says. The CFTC's Commitment of Traders report issued Friday showed cuts in both long and short positions held by fund traders, although managed money maintained a net short position of over 76,000 contracts. (kirk.maltais@wsj.com)

1257 ET - Fund traders pulled back from exposure to agricultural futures according to the CFTC's Commitments of Traders report for the week ended March 11. Fund traders cut exposure to corn long positions by over 50,000 contracts and trimmed soybeans shorts by nearly 19,000 contracts. Traders actually added short positions to categories of wheat, particularly hard red spring wheat, with shorts increasing by over 8,100 contracts. Corn is up 0.5%, wheat climbs 2.8%, and soybeans slip 0.2%. (kirk.maltais@wsj.com)

1250 ET - Warmer weather forecasts and efforts to end the war in Ukraine are pushing European natural-gas prices lower, with the benchmark Dutch TTF contract falling 2.7% to 41.15 euros a megawatt hour. U.S. President Trump and Russian President Vladimir Putin are set to speak on Tuesday. An agreement could raise hopes for the resumption of some Russian flows to the continent, but the outlook remains uncertain. "Putin said last week that if the U.S. and Russia agree on cooperation in the energy sector, then a gas pipeline for Europe could be ensured," ANZ Research analysts say. "However, the EU remains committed to ending its dependence on Russian energy, with a plan to phase out all use by 2027 still in the works." Meanwhile, warmer temperatures could alleviate pressure on inventories, which are currently well below the seasonal average. (giulia.petroni@wsj.com)

1244 ET - Gold futures hold flat, just below its all-time high as the U.S. dollar and treasury yields slip. Futures are flat at $3,002.20 a troy ounce, near the all-time record of $3,017.10/oz set on Friday. A faltering greenback and heightened risk aversion on U.S. President Trump's latest trade brinkmanship continues to drive demand, StoneX's Fawad Razaqzada says in a note. The outlook for gold is bullish, but with interest-rate decisions from the U.S. Federal Reserve, Bank of England and Bank of Japan due this week there could be some near-term profit taking, Razaqzada says. The precious metal could get a boost from softer stances from policymakers. On the other hand, any signs of easing geopolitical tensions could cool safe-haven demand, Razaqzada adds. (joseph.hoppe@wsj.com)

(END) Dow Jones Newswires

March 17, 2025 16:15 ET (20:15 GMT)

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