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

0822 ET - Hershey says it's working to get cocoa exempted from tariffs, which are adding to pressure for the candy giant on top of high prices for its key ingredient. The Pennsylvania chocolatier says it is "engaging with the U.S. government," to seek an exemption, since cocoa cannot be grown domestically. In the meantime, Hershey says it is planning for continued inflation and preparing options such as raising prices on its products. The company says it expects tariffs expenses to total $15 to $20 million in its current quarter. (jesse.newman@wsj.com)

0731 ET - Gold futures slide, under pressure from a stronger U.S. dollar and profit taking. Futures are down 2.65% at $3,231.0 a troy ounce, though they remain up 20% in the year-to-date. Prices have now fallen nearly 7.9% since setting a fresh record high of $3,509.90/oz on April 22. Market risk appetite has grown and reduced demand for safe-haven assets amid rising hopes for President Trump's administration signing trade deals in the near-term. China, currently the largest consumer of gold given economic concerns, has also begun the May Day holiday. This has further reduced upward pressure on gold prices for the time being. Market attention now turns to Friday's U.S. Nonfarm Payrolls report. Weak numbers would boost optimism for Federal Reserve interest rate cuts, heightening non-interest-bearing bullion's appeal. (joseph.hoppe@wsj.com)

0620 ET - Base metal prices rise, with LME three-month copper up 0.7% at $9,187.0 a metric ton and LME three-month aluminum up 1% at $2,415.0 a ton. Base metals have recouped some losses seen in the prior session, though copper and aluminum remain down 2% and 1.2% on week, respectively. Metals are under pressure amid sustained concerns over slowing global economic growth, following weak U.S. GDP and labor data, SP Angel analysts say in a note. The International Copper Study Group expects a surplus of nearly 500,000 tons of copper over the next two years, further pressuring prices, SP Angel writes. This has been driven by a ramp-up in production in Congo, Mongolia and Russia in particular, with additional output rising in Australia, Indonesia and Kazakhstan, SP Angel adds. (joseph.hoppe@wsj.com)

0438 ET - The oil market is expected to face a large surplus this year due to softer global demand growth and robust supply, according to MUFG. "The U.S. administration's volatile tariff policy strategy has made traders that were already skittish on the longstanding oversupply this year nervous about loosening fundamentals," head of commodities Ehsan Khoman and analyst Soojin Kim say. MUFG forecasts an oversupply of 1.1 million barrels a day in 2025, with Brent crude at an average of $66 a barrel, from $73 a barrel previously. "The Fed put and Chinese stimulus may offer a floor in oil prices, but it's tough being an oil bull today," they say. (giulia.petroni@wsj.com)

0419 ET - Gold futures slump on easing trade tensions and falling safe-haven demand. Futures are down 2.3% at $3,242.90 a troy ounce. A stronger U.S. dollar has further damped enthusiasm for gold as a safe-haven and made dollar-denominated commodities more expensive for international purchasers to buy. Market optimism and risk appetite are growing after U.S. President Trump said there is a good probability that the U.S. will reach a trade deal with China. Further losses may be limited however, as interest rate cut expectations have also been lifted following a string of weak economic data releases from the U.S., with the economy contracting 0.3% in the first quarter. Lower interest rates typically boost demand for non-interest bearing bullion. (joseph.hoppe@wsj.com)

2151 ET - Copper prices gain as fundamentals appear positive in the near term. Prices are higher given its tight supply in the global market, TF Futures analysts write in a note. Copper inventories have been clearing effectively in China, they say. However, copper prices may face some pressure in 2Q due to the uncertainty around U.S. and China trade tensions, they add. The three-month LME copper contract is 0.4% higher at $9,162.50 a ton.(jiahui.huang@wsj.com; @ivy_jiahuihuang)

1901 ET [Dow Jones]--Regis Resources's share price rally has Barrenjoey pondering the possibility that it could pursue M&A. Regis's stock is up around 80% so far this year, giving it significant firepower should it pursue scrip-based deals. "We have been concerned that Regis's short-life business and need to grow through inorganic growth was a key issue, and part of the basis of our underweight rating," analyst Daniel Morgan says. "If Regis can finance inorganic growth through its fully valued scrip, then meaningful value might be created with limited dilution." Regis ended Wednesday at A$4.51. (david.winning@wsj.com)

1553 ET - Today was the third consecutive lower close for lean hog futures on the CME, with the most-active contract closing down 1.2% to 98.45 cents a pound. In the short term, momentum appears downward, says RJ O'Brien Market Insights in a note. "Shorter-term traders with tighter risk profiles have been advised to move to a neutral/sideline position or even a cautious bearish stance," says the firm -- adding that longer-term traders can still maintain what the firm calls "a bullish policy and exposure." Live cattle futures close down 0.9% to $2.084 a pound. (kirk.maltais@wsj.com)

1516 ET - Oil futures fall for a third day, hit by an unexpected drop in U.S. economic activity and a Reuters report that Saudi Arabia can deal with lower oil prices and is unwilling to shore up the market with further output cuts. Saudi-led OPEC+ is due to lift production by 411,000 barrels a day on Thursday, and on Monday will meet to discuss June output levels. "Now there is a feeling that the Saudis could go old school 2020-style and open the taps for size," Mizuho's Robert Yawger says in a note. The report put further pressure on crude already reeling from the 0.3% U.S. 1Q GDP contraction, he says. The EIA's report of a 2.7 million barrel drawdown in crude stocks is overshadowed by concerns about supply and demand balances. WTI falls 3.7% to $58.21 a barrel for a 19% monthly loss. June Brent expires at $63.12 a barrel, down 16% on the month. Brent for July delivery settles down 3.5% at $61.06. (anthony.harrup@wsj.com)

1509 ET - U.S. natural gas slips after a three-day rally, with weak U.S. GDP weighing and the market expecting that the inventory deficit could swing to a small surplus with tomorrow's storage data. "We don't expect a major price response from the EIA report," Ritterbusch says in a note. "The likelihood that the injection will exceed 5-year average increases by as much as 45-50 Bcf has been discounted." Analysts in a Wall Street Journal survey predict an injection of 106 Bcf for last week, which would put stocks 4 Bcf above the five-year average. Nymex natural gas settles down 1.8% at $3.326/mmBtu for a monthly loss of 19%. (anthony.harrup@wsj.com)

1506 ET - Moody's Ratings lowers its outlook on Starbucks to negative from stable because the coffee-shop chain continues to post declining profitability despite improvements in sales. Starbucks's reinvention strategy Back to Starbucks is driving up costs at a time when consumer confidence is low and could drive down discretionary spending, Moody's said. Moody's expects debt leverage to rise well above Starbucks's target over the next 12 months. The restaurant is also facing tighter competition in key markets, cost pressures from labor expenses and slimmer margins from its reinvention plan. Starbucks said Tuesday its 1Q profit was half of what it was the year before. Shares fall 6.6% to $79.25. (katherine.hamilton@wsj.com)

1503 ET - Gold gains for the fourth consecutive month, with the front-month contract rising 5.8% for April and settling at $3,305 a troy ounce. Prices did fall back from last week's levels, when most-active gold futures set their latest price record at 3,425.30 a troy ounce on April 21. Since then, gold has fallen for five out of the past seven trading sessions, as traders regained their nerve to invest in riskier assets like equities. Even today, as the first negative GDP reading since 2022 landed, gold couldn't get an edge and fell 0.4%. "Gold has failed to rise to the occasion and take charge of safe haven flows today," says Robert Yawger of Mizuho Securities USA in a note. (kirk.maltais@wsj.com)

(END) Dow Jones Newswires

May 01, 2025 09:15 ET (13:15 GMT)

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