Nestle Sales Get Boost From Coffee, Chocolate Price Hikes -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 1% at $65.82 a barrel.

--European benchmark gas is down 1.6% at 33.62 euros a megawatt-hour.

--Gold futures are up 1.7% at $3,349.10 a troy ounce.

--LME three-month copper futures are up 0.4% at $9,403 a metric ton.

TOP STORY:

Nestle Sales Get Boost From Coffee, Chocolate Price Hikes

Nestle posted higher sales that slightly beat analysts' expectations as the world's largest food maker managed to pass on double-digit price increases for its coffee and chocolate products in some markets.

The Swiss maker of KitKat chocolate bars and Nescafe coffee is pursuing a turnaround after a consumer pullback led it to cut guidance twice last year and prompted the company to shift its strategy. Nestle said last year that it would focus on fewer but stronger product launches and boost marketing investments, but high costs for key ingredients combined with weak consumer demand and tariff uncertainty cast a cloud over its plans.

Nestle on Thursday confirmed its guidance for the year, saying the impact of current tariffs on consumers, currencies and commodity prices remains unclear for now.

OTHER STORIES:

Posco's Profit Slumps as Trump Tariffs Take Effect

Posco Holdings posted lower first-quarter net profit, dented in part by tariffs the Trump administration imposed on all steel and aluminum imports into the U.S.

The South Korean steelmaker said Thursday that both production and sales of steel goods declined in the wake of repair work at its steel mills, and that it faced difficult business conditions, compounded by the global tariff war and economic uncertainty. Higher steel prices and cost-saving efforts partly helped improve profitability, it said.

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Missed the Gold Rally? Go for Silver

Gold has once again proven its mettle as a hedge against financial chaos. If history is any guide, the gains may have room to run further. But they could also soon be outshined by that other, less-adored precious metal.

The yellow metal is a contentious subject in the investment community, with passionate advocates and detractors alike. But a levelheaded look at the historical record suggests a clear conclusion: While it underperforms stocks vastly in the very long run, gold is also prone to extended periods of outperformance when things go awry. Silver rallies also tend to follow gold after a lag.

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PepsiCo Cuts Growth Forecast, Citing Tariff Volatility

PepsiCo said it no longer expects earnings to rise this year because costs are surging from tariffs and consumer spending is fizzling out.

"We expect more volatility and uncertainty, particularly related to global trade developments, which we expect will increase our supply chain costs," Chief Executive Ramon Laguarta said. "At the same time, consumer conditions in many markets remain subdued and similarly have an uncertain outlook."

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Teck Resources Results Get Boost From Copper, Zinc Prices

Teck Resources reported first-quarter revenue and profit that beat consensus expectations and said its profitability benefited from higher commodity prices and copper sales volumes.

The Canadian mining company said first-quarter net profit was 370 million Canadian dollars ($266.5 million), up from C$343 million in the same period last year. On a per-share basis, profit was C$0.73, up from C$0.65.

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Gold Fields Gets 12-Month Lease Extension for Ghana's Damang Mine

Gold Fields said the government of Ghana approved a 12-month extension of its lease for the Damang mine.

The gold miner said the new lease is subject to ratification by the country's Parliament on May 16.

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I-80 Gold Taps Paul Chawrun as COO

I-80 Gold said Thursday that it has appointed Paul Chawrun as its new chief operating officer, effective at the end of the month.

Chawrun brings with him a wealth experience to the of Nevada-focused mining company, most recently as COO at Centerra Gold.

MARKET TALKS:

Base Metal Prices Mixed as Risk-On Mood Loses Steam -- Market Talk

1209 GMT - Base metal prices are mixed, with LME three-month copper up 0.2% at $9,390.50 a metric ton and LME three-month aluminum down 0.3% at $2,436.0 a ton. Base metals had gained in the prior session as the wider market shifted into a risk-on mood, reflecting optimism for a resolution to the China-U.S. trade war. However, fresh comments from Treasury Secretary Scott Bessent and Beijing have since poured cold water on market enthusiasm. Hopes of accelerated stimulus from Beijing and still-firm demand in China can keep prices treading water near-term, MUFG analysts say in a note. However, the increasingly apparent loss in global demand momentum in the coming months will eventually pressure base metal prices, they add. Copper is an especially risky bet given historical sensitivity to global growth uncertainty, the analysts write. ([e-mail])

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Gold Futures Rise as U.S.-China Trade Resolution Hopes Falter -- Market Talk

1153 GMT - Gold futures rise as the risk-on rally loses momentum. Futures are up 1.7% at $3,349.30 a troy ounce. The precious metal's price has been volatile, reaching a new record high of $3,509.90/oz on Tuesday, before falling as low as $3,270.80/oz on Wednesday on renewed optimism around a swift resolution to the U.S.-China trade spat. Remarks from both Washington and Beijing have since cast a long shadow over markets, prompting investors to reassess recent enthusiasm, StoneX's Fawad Razaqzada says in a note. U.S. Treasury Secretary Scott Bessent downplayed the idea of imminent progress, while China confirmed no formal talks are currently underway. Stocks reversed gains and the "Sell America" trade looks back on, raising gold's safe-haven appeal, Razaqzada writes. ([e-mail])

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Palm Oil Falls Amid Potential Profit-Taking -- Market Talk

1011 GMT - Palm-oil prices ended marginally lower, amid potential profit-taking, Kenanga Futures analysts wrote in a research note. Prices closed higher in the last two sessions. Ongoing economic uncertainties could have also weighed on prices, the analysts said. Kenanga Futures pegs CPO futures support at 3,960 ringgit a ton and resistance at 4,130 ringgit a ton. The Bursa Malaysia derivatives contract for July delivery closed 1 ringgit lower at 4,036 ringgit a ton. ([e-mail])

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Copper Gains on Tariff De-Escalation Hopes Amid Mixed Base Metal Mood -- Market Talk

0944 GMT - Base metal prices are mixed, with LME three-month copper up 0.5% at $9,415 a metric ton and LME three-month aluminum down 0.2% at $2,437.50 a ton. Metals rose in Wednesday's session and copper and aluminum are up 2.9% and 1.9% on week, respectively, amid hopes of a de-escalation in U.S.-China trade tensions. Optimism rose after President Trump floated substantial tariff cuts and claimed he had no intention of firing Federal Reserve Chair Jerome Powell, igniting a risk-on tone in financial markets, ING analysts say in a note. On the LME, speculators nearly tripled their net long positions in copper to 98,765 contracts, the most bullish on record since January 2018, ING says. Supply concerns have also been raised after Peru's Antamina copper-zinc mine was shut down for safety reasons, ING adds. ([e-mail])

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Gold to Remain Bullish With Ongoing Trade Tensions, Rising Recession Risks -- Market Talk

0929 GMT - Gold will remain bullish with ongoing trade tensions and rising recession risks, driven by the continued strength of central-bank buying, Julius Baer's head of next generation research Carsten Menke writes in a note. "When we outlined the potential pathways of Trump's presidency, interference with the central bank was one of the bullish wild cards for gold," Menke adds. Interference would come at a huge cost and could vastly exceed this week's $200 per ounce swing, the analyst says. There are rising risks of a U.S. recession, paired with a risk-off mood in financial markets, which have been accompanied by a return of safe-haven seekers to the gold market, the analyst adds. ([e-mail]; @ivy_jiahuihuang)

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OPEC+ Could Pump More Oil in June, DNB Markets Says -- Market Talk

0909 GMT - OPEC+ could boost production beyond current plans in June amid mounting tensions with Kazakhstan, according to DNB Markets. "Saudi Arabia and its allies will likely immediately launch a broad diplomatic push to convince Kazakhstan to comply with its OPEC+ target," energy analysts Helge Andre Martinsen and Tobias Ingebrigtsen say. "But if Riyadh fails to assert discipline that way, it could try to compel Kazakhstan and other errant OPEC+ members to fall in line by flooding the market with more oil, effectively launching a price war." Kazakhstan's crude production stood at 1.82 million barrels a day in March, 27% above its OPEC+ target, DNB says. OPEC+'s production plans for June will be decided on May 5. ([e-mail])

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Gold Futures Rise, Recouping Some Losses From Prior Session -- Market Talk

0750 GMT - Gold futures rise, rebounding after a sharp sell-off in Wednesday's session. Futures are up 1.4% at $3,341.0 a troy ounce. The precious metal reached a fresh record high of $3,509.90/oz on Tuesday, crossing the $3,500/oz mark for the first time ever, before falling as low as $3,270.80/oz on Wednesday as a market risk-on rally picked up steam. That said, gold's record-breaking rally looks far from over, MUFG analysts say in a note. The yellow metal will still operate as a hedge against geopolitical and financial risks, and will be backed by central bank and ETF demand, particularly if interest rates are cut, MUFG says. The Japanese bank maintains expectations for gold to hit $3,850/oz by the end of the year and exceed $4,000/oz by the second quarter of 2026. ([e-mail])

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European Gas Price Edges Lower Amid Easing Storage Concerns -- Market Talk

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