Food Prices Reach 19-Month High in November, U.N. -2-

0844 GMT - Gold prices recover some ground in early European trade after coming under renewed pressure due to Fed Chair Jerome Powell's more cautious stance on lowering rates. Futures trade 0.5% higher at $2,660.80 a troy ounce ahead of U.S. nonfarm payrolls data later on Friday. "Investors will be closely watching job data due today," ANZ Research analysts say. "Surprisingly strong nonfarm payroll data could drag prices below $2,600/oz." Prices are currently supported by expectations of a 25-basis-point Fed rate cut this month, coupled with a softer risk tone and higher demand for safe-haven assets amid concerns over U.S. trade tariffs and geopolitical turmoil. ([e-mail])

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Oil Holds Tight Range After OPEC+ Extended Output Cuts -- Market Talk

0828 GMT - Oil prices continue to trade in a tight range despite OPEC+'s decision to push back a series of supply increases amid growing concerns over weaker demand and a looming supply surplus. Crude benchmarks Brent and WTI are both down 0.1% at $71.99 and $68.21 a barrel, respectively. "The action taken by OPEC+ eats quite heavily into the surplus that was expected over 2025," Warren Patterson, head of commodities strategy at ING, says. "However, the extension and the slower return of barrels is not enough to push the market into deficit next year." Slower demand growth and strong non-OPEC+ supply are still expected to leave the market oversupplied in the first half of next year. The projected surplus is now estimated at around 500,000 barrels a day compared with 1 million barrels a day previously, Patterson says. ([e-mail])

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Crude Palm Oil Prices May Trade Around MYR4,500/Ton in 1Q 2025 -- Market Talk

0351 GMT - Crude palm oil prices are likely to remain around MYR4,500/ton in 1Q 2025, CGS International analyst Jacquelyn Yow writes in a note. Factors include lower inventory levels at end-2024, limited vegetable oil supply, and higher festive demand in the quarter, she says. Yow attributes the recent spike in CPO prices to above MYR5,000/ton in early November to speculative elements, including the "Trump" factor, and higher Indonesian biodiesel blending. She forecasts CPO prices to undergo a correction in 2H 2025 following a recovery in CPO production, especially from Indonesia and a higher global supply of soybean oil. CGS International remains neutral on Malaysia's agribusiness sector and maintains its average 2025 CPO price forecast at MYR4,000/ton. CPO prices are at MYR5,120/ton. ([e-mail])

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Iron Ore Lower, Pressured by Chinese Property Market -- Market Talk

0239 GMT - Iron ore futures are lower in early Asian trade. Iron ore prices are continuing their decline as lingering worries over China's property market have raised questions about the sustainability of the ore's recent price rebound, ANZ research analysts say in a commentary. Despite several stimulatory measures, Chinese property developer Country Garden Holdings witnessed a fall in its contracted sales in November, the analysts note. The most-traded iron-ore contract on the Dalian Commodity Exchange is down 0.6% at CNY800.0/ton. ([e-mail])

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Crude Palm Oil Prices Likely to Stay Elevated Amid Malaysia's Flooding -- Market Talk

0205 GMT - Crude palm oil prices are expected to remain high in the near term due to Malaysia's ongoing flooding, TA Securities analyst Angeline Chin writes in a note. The country is facing its worst floods in a decade caused by the monsoon season, Chin says. From January to October, several states, including Johor, accounted for approximately 49% of Malaysia's total palm oil production, the analyst adds. Any supply disruption from flooding in these states would significantly impact CPO output, Chin notes. TA Securities maintains its neutral recommendation on Malaysia's plantation sector and its 2025 average CPO price estimate of MYR3,800/ton.([e-mail])

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(END) Dow Jones Newswires

12-06-24 0958ET