Global Commodities Roundup: Market Talk

Dow Jones
2小时前

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

0243 GMT - Palm oil rises in Asian trading following Friday's gains in soybean oil on the Chicago Board of Trade. Higher crude oil prices provide further support amid ongoing Middle East uncertainty, boosting palm oil's attractiveness as a biodiesel feedstock, AmInvestment Bank says in a note. It expects crude palm oil futures to find support at 4,499 ringgit a ton and face resistance at 4,558 ringgit a ton. The Bursa Malaysia Derivatives contract for December delivery is up 6 ringgit at 4,541 ringgit a ton. (yingxian.wong@wsj.com)

0155 GMT - Haze puts palm oil sustainability back under scrutiny, with recurring fires highlighting the need for stronger land and fire management, MBSB Research says in a note. Malaysia recorded 93 hotspots in September, while Indonesia recorded 14,422, with Kalimantan accounting for 76.8% of the total. While sustainability certifications provide some assurance on environmental and land-management practices, their effectiveness ultimately depends on implementation on the ground, MBSB says. Fires outside plantation boundaries could also affect the industry's reputation and raise questions over smallholder compliance, it reckons. Certification alone may not shield the sector's reputation as Indonesia's B60 biodiesel ambitions boost palm oil demand, making responsible land management increasingly important as production expands, it adds. MBSB maintains a tactical positive stance on Malaysia's plantation sector. (yingxian.wong@wsj.com)

0143 GMT - Gold rises in Asian trade. A softer-than-expected U.S. personal consumption expenditures reading released end-September likely tempered Federal Reserve rate-hike bets in October, Societe Generale says in a note. "The markets priced roughly a 40% chance of an October Fed move, offering gold a tentative foothold as it entered October," SocGen says. A higher interest-rate environment typically weighs on the yellow metal. The precious metal's moves appear to be defined by a "tug of war" between structural buyers--central banks and exchange-traded-fund flows--and macro headwinds such as a strong dollar and increased interest rates, SocGen adds. Spot gold rises 0.3% to $4,155.78 a troy ounce. (megan.cheah@wsj.com)

0139 GMT - Copper gains in early Asian trade amid supply concerns. Production in Chile, the world's largest copper producer, fell in August to its weakest since February 2011. "This may be compounded by strike action, ANZ Research analysts say in a note. Workers at Antofagasta's Centinela mine in Chile voted to strike after wage talks failed, ANZ adds. The three-month LME copper contract is up 0.6% at $14,349.00 a ton. (amanda.lee@wsj.com)

2110 GMT - A key attraction of Lynas Rare Earths's all-share acquisition of Meteoric Resources is the ability to access more heavy rare earths, suggests Jefferies. Meteoric owns the Caldeira rare-earths project in Brazil's Minas Gerais state. Jefferies models first production in FY34. Analyst Mitch Ryan notes a definitive feasibility study for Caldeira pointed to output of dysprosium and terbium of some 127 tons/year. That adds a material second heavy rare earth feed source alongside Lynas's existing Mt Weld project. "Our model reaches 151 tons/annum at run rate, 64% of Mt Weld's modelled 235 tons/annum," Jefferies says. "Diversification and potential exposure to separated heavy rare earth pricing support the strategic case, subject to mine delivery and sufficient downstream capacity." (david.winning@wsj.com; @dwinningWSJ)

2053 GMT - Northern Star Resources's acknowledgement that it received a US$27.2 billion takeover proposal from Gold Fields is likely to encourage shareholders to pressure on board to consider future proposals, says Ord Minnett. Its price target rises by 31% to A$25.85/share. "Our revised valuation suggests the proposal was rejected more for its significant, higher-risk (jurisdictional) equity component than its overall implied value," analyst Paul Kaner says. He reckons a higher cash component, higher-quality scrip, or a more compelling premium could increase the likelihood of Northern Star formally engaging with a potential suitor. Ord Minnett upgrades Northern Star to accumulate, from hold. Northern Star ended last week at A$24.02.

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