1010 GMT - Palm oil ended higher, with the Bursa Malaysia Derivatives contract for April delivery rising 23 ringgit to 4,213 ringgit/ton. Higher crude oil prices during Asian hours lifted market sentiment, said David Ng, a trader at Kuala Lumpur-based proprietary trading company Iceberg X. Ng added that traders expect weaker palm oil output in the coming weeks. He sees support for CPO futures at 4,150 ringgit/ton and resistance at 4,330 ringgit/ton. (amanda.lee@wsj.com)
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Base Metal Prices Rise on China Demand Hopes, Softer Dollar -- Market Talk
0926 GMT - Base metal prices rise, with LME three-month copper up 1% at $9,333.50 a metric ton and LME three-month aluminum up 0.7% at $2,647.50 a ton. Metals have enjoyed a rally in January so far, with gains driven largely by renewed optimism over Mainland Chinese demand and support pledges from the country's officials, BMI analysts say. The Bloomberg industrial metals sub-index has risen by 4% since the start of the year, bolstered by signs of stronger Chinese demand and a slightly softer U.S. dollar, they say in a note. That said, the prospects of renewed trade conflicts under President Trump have weighed industrial metals to the downside, placing a cap on price growth, they add. Trump has proposed tariffs of 25% on Mexico and Canada and 10% on China, starting from Feb. 1. (joseph.hoppe@wsj.com)
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Lower Oil Prices Might Hurt U.S. Producers, Capital Economics Says -- Market Talk
0850 GMT - Lower oil prices won't encourage U.S. producers to increase their output, threatening President Donald Trump's "drill, baby drill" plans, according to Capital Economics' David Oxley. In a speech at the World Economic Forum in Davos, Switzerland, Trump said he will ask Saudi Arabia and OPEC to reduce the price of crude, implying a need for the cartel to raise output. But lower oil prices reduce profitability, especially for producers operating in high-cost regions like Alaska. "With estimates putting breakeven oil prices for new wells in key oil-producing regions in the U.S. between $60-$70 a barrel, oil prices wouldn't have to fall that far from current levels before it would become uneconomic to develop some of these higher-cost new wells," the economist says. (giulia.petroni@wsj.com)
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Oil Outlook Clouded by U.S. Tariff Plans, Mixed Demand Indicators -- Market Talk
0831 GMT - Crude's outlook remains uncertain amid U.S. trade tariff plans and mixed demand signals, Pepperstone's Quasar Elizundia says. According to the strategist, U.S. President Trump's proposed tariffs could lead to a slowdown in global economic growth and negatively impact energy demand. "The shadow of tariffs looms over the energy market, introducing an uncertainty factor that could amplify volatility and additionally strengthen the U.S. dollar," he says in a note. A stronger dollar makes commodities like oil more expensive for holders of other currencies, damping demand. Meanwhile, the Energy Information Administration's latest data shows oil inventories fell for a ninth consecutive week and gasoline stocks continued to build--a contrast that underscores the delicate balance between supply and demand dynamics in the market, Elizundia says. (giulia.petroni@wsj.com)
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Iron Ore Rises Amid Supply Concerns -- Market Talk
0243 GMT - Iron ore rises in early Asian trade. Rio Tinto, one of the world's biggest producers of the steel ingredient, said Friday that first-quarter iron-ore shipments will be affected by flood damage from a tropical cycle in northwest Australia. The market is also digesting President Trump's warning that China may be hit with 10% tariffs on all imports. The most-traded iron-ore contract on the Dalian Commodity Exchange is up 0.5% at CNY805.0 a ton.(amanda.lee@wsj.com)
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
01-24-25 1125ET