California Wants to Throw the Book at State Farm -2-

0918 ET - U.S. natural gas futures are lower with near-term weather-driven demand still weak and LNG exports off recent highs. "Recent dips in production are showing signs of recovering higher, and LNG feedgas demand is deteriorating amid seasonal maintenance," Eli Rubin of EBW Analytics says in a note. The LNG declines are "seasonal not structural," he adds. Nymex natural gas is down 1.2% at $2.833/mmBtu.([e-mail])

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Oil Futures Ease As Market Awaits Hormuz Developments

0858 ET - Crude futures continue in a see-saw trading pattern as the market awaits clarity on prospects for the Strait of Hormuz to reopen. The recent flare-up in hostilities threatens to unravel the cease-fire, keeping risk premium in place, Nikos Tzabouras of Tradu says in a note. As the conflict drags on, crude will remain on track for new highs, although a prolonged energy shock raises demand destruction risks "that could ultimately pull the rug from under crude's advance," he adds. WTI is down 3.4% at $102.79 a barrel and Brent is down 2.2% at $111.93 a barrel. ([e-mail])

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Cocoa Nears Three-Month High as El Nino Fears Cause Supply Concern -- Market Talk

1136 GMT - Cocoa prices approach a three-month high as concerns mount around the impact of an El Nino weather system on global supply. New York Cocoa futures rise 2.7% to $3,987 after briefly topping $4,000 earlier in the session--a level not reached since early February. Escalations in the Strait of Hormuz also support cocoa prices as a result of disruption to supply chains raising costs. Moreover, recent irregular rainfall in Ivory Coast is weighing on crop expectations, SwissPartners's Paul Bosmediano Benalcazar writes in a note. "The market is no longer pricing stability. It is starting to price in structural risk." ([e-mail])

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Palm Oil Ends Higher as Stronger Soybean, Crude Oil Offer Support -- Market Talk

1025 GMT - Crude palm oil ended higher yet again, supported by stronger soybean oil and crude oil prices, according to David Ng, a trader at Kuala Lumpur-based Iceberg X. Expectations for lower stockpiles are also keeping market sentiment supported, Ng says. He sees palm oil supported above 4,600 ringgit a ton and resistance at 4,750 ringgit a ton. The Bursa Malaysia Derivatives contract for July delivery rose 88 ringgit to 4,710 ringgit a ton. ([e-mail])

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Gold Edges Up but Middle East Escalation Caps Further Gains -- Market Talk

0733 GMT - Gold prices rebound but gains are capped by escalating hostilities in the Middle East, with elevated oil prices driving inflation concerns. In early European trading, futures in New York rise 0.6% to $4,560.50 a troy ounce. "Investors stepped in to buy after a recent selloff triggered by renewed Middle East tensions," says Soojin Kim from MUFG. Still, "the surge in oil prices and rising US Treasury yields, driven by expectations that the Fed may need to raise interest rates, continue to weigh on non-yielding gold." Meanwhile, silver futures rise 0.4% to $73.80 an ounce and platinum is up 1.3% to $1,987.50 an ounce. ([e-mail])

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Oil Eases But Stays Elevated as Hormuz Tensions Flare Up

0724 GMT - Oil prices ease but remain elevated after Iran fired at American warships and disrupted a U.S. effort to revive shipping in the Strait of Hormuz. In early European trading, Brent crude for July delivery is down 1% to $113.24 a barrel after rallying nearly 6% in the previous session, while WTI futures for June fall 2.3% to $104.1 a barrel. "The flare-up in tension is likely to halt any moves by ship owners to consider transiting the Strait," analysts at ANZ say. Meanwhile, the U.A.E. confirmed a strike sparked a fire at the oil hub of Fujairah, threatening around 1.9 million barrels a day that the country has been exporting via the route since the effective closure of Hormuz. ([e-mail])

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Palm Planters' Fertilizer Costs Expected to Stay Elevated -- Market Talk

0229 GMT - Fertilizer prices are likely to remain elevated over the next 12-24 months even if Middle East tensions ease, with supply disruptions and export curbs keeping global markets tight, Maybank IB's Ong Chee Ting says in a note. The cost impact for palm oil growers may be limited in the near term, given that most 1H fertilizer needs were secured earlier, the analyst says. The bigger risk is to output, as any cut in fertilizer use, especially by smallholders, could reduce fresh fruit bunch yields with a six- to 24-month lag, potentially affecting crude palm oil production in 2027, he says. Higher fertilizer costs may remain manageable for now, supported by firm CPO prices, he adds. SD Guthrie, Sarawak Oil Palms and Genting Plantations are Maybank's preferred buys. ([e-mail])

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Base Metals Decline Amid Subdued Sentiment -- Market Talk

0218 GMT - Base metals decline in Asian trade after the London Metal Exchange returns from a public holiday. Market sentiment appears subdued amid fresh tensions stemming from the Middle East conflict, as strikes on several ships tested a shaky cease-fire. Sustained high energy prices are also raising concerns around demand prospects for industrial metals, ANZ Research says in a note. The three-month copper contract on the LME is down 0.9% at $12,879.00 a metric ton. Aluminum is down 0.9%, nickel is off 0.7%, and zinc is 1.1% lower.([e-mail])

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(END) Dow Jones Newswires

05-05-26 1151ET