Nestle Says Slowdown in Rising Food Costs Isn't -2-

1633 GMT - Gold futures rise 0.5% to $2,705.10 a troy ounce, having peaked at a new record of $2,712.70/oz in late European trading. The precious metal gained on sliding U.S. Treasury yields in the wake of inflation concerns, and renewed economic pessimism in China driving investors toward safe-haven assets, market watchers say. Hong Kong officials stated plans on Wednesday to develop the region into a gold trading hub, and the precious metal is becoming increasingly popular with developing economies looking to diversify their foreign reserves, SP Angel analysts say in a note. This can be seen in the huge builds of gold inventories by the likes of China, Russia and Turkey over the past few years, and with the BRICS summit set to begin next week--hosted by Russia--de-dollarization will be a key part of the agenda, SP Angel says. ([e-mail])

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Global Alumina Supply Remains Strained -- Market Talk

1200 ET - Global alumina supply is likely to stay tight while prices rise, Alcoa CEO William Oplinger tells analysts on a call. He says competitors in Northern Australia, Jamaica and India were struck by force majeure disruptions that were beyond their control in the past year--while Alcoa reported a decrease in alumina production in 3Q after curtailing its Kwinana, Australia facility. Oplinger says the following has to happen for alumina supply to come into balance: "Those disruptions need to be cleared up and not recur. And secondly, we're going to need to see growth in Indonesia and India." ([e-mail])

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USDA Reports More Corn Sales To Mexico -- Market Talk

0956 ET - The USDA reports 197,180 metric tons of corn sales to Mexico for the 2024/25 marketing year, adding to yesterday's 1.62 million metric tons, which was the largest flash sale of corn in nearly a year to our southern neighbor. Of that total, 1.04 million tons were for delivery in the 2024/25 marketing year and the rest for 2025/26. Doug Bergman of RCM Alternatives says in a note that it's, "a good sign for demand, but more large sales will need to be seen to significantly change the supply/demand outlook." Today's USDA announcement also includes 101,000 tons to unknown destinations for the 2024/25 marketing year. Corn is off 0.7% at $4.01 3/4 a bushel. ([e-mail])

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Gold Futures Close to Record on Drop in U.S. Treasury Yields, Safe-Haven Demand -- Market Talk

1143 GMT - Gold futures rise 0.4% to $2,702.00 a troy ounce, just shy of its all-time record of $2,708.70 per ounce set in late September. Despite the strengthening U.S. dollar, the precious metal is still seeing strong demand, driven by sliding U.S. Treasury yields, the prospect of major central banks cutting interest rates, global economic uncertainty and geopolitical risks, says Ricardo Evangelista, senior analyst at ActivTrades. The main driver behind Thursday's gains is likely the sharp fall in Treasury yields, with the 10-year note falling more than half a percentage point, Evangelista says. Speculation around a potential second Donald Trump presidency--with a focus on protectionist policies and the possible hit to trade and economic growth--has fuelled safe-haven demand, Evangelista says in a note. ([e-mail])

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

1008 GMT - Palm oil ended lower amid likely profit-taking after strong gains in the previous session. Despite losses in this session, palm-oil prices could still have strong support and remain on an upward path, Zhengxin Futures said in a research note. Data released by the Malaysian Palm Oil Board last week showed the country's palm production in September fell 3.8% on month, compared with the average of 2.92% growth for the same period in the past 10 years, Zhengxin said. Malaysia may have entered a production reduction cycle earlier than previous years, it said. Meanwhile, expected strong demand from India during the upcoming holiday season could further lift palm prices, it said. The Bursa Malaysia Derivatives contract for January delivery ended MYR34 lower at MYR4,277 a ton. ([e-mail])

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Base Metal Prices Fall as China Real Estate Support Disappoints Market -- Market Talk

0941 GMT - Base metal prices fall, with LME three-month copper trading 1.4% lower to $9,455 a metric ton and LME three-month aluminum declining 1.3% to $2,553.0 a ton. Industrial metals have edged lower despite China's latest efforts to shore up support for its moribund real estate sector, ING analysts say in a note. The country has said it will expand a national list of housing projects eligible for bank financing and increase bank spending for such developments to 4 trillion yuan, or $561.85 billion, ING says. In a briefing Thursday, the minister of Housing said China will expand urban redevelopment to help absorb housing inventories and said the sector has started to bottom-out--but the market has shown disappointment that no new fiscal stimulus measures have been announced, ING adds. ([e-mail])

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Gold Attempting to Breach Resistance at $2,700/oz, Chart shows -- Market Talk

0631 GMT - Gold is attempting to breach resistance at $2,700/oz, based on its daily chart, says Joseph Chai, analyst at RHB Retail Research, in a research report. Latest bullish candlestick indicates the commodity's attempts to break past this resistance level, Chai says. The relative strength index continues to trend upwards, signaling bullish momentum is gathering pace and positive price movements may follow-through in coming sessions, Chai says. However, strong selling pressure is expected to emerge at $2,700/oz, he adds. As long as the precious metal remains below $2,700/oz, it could resort to sideways movements or a correction, Chai says. Spot gold is 0.3% higher at $2,682.11/oz. ([e-mail])

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Iron Ore Falls on Expectations for Milder Stimulus From Beijing -- Market Talk

0231 GMT - Iron ore prices are lower in early Asia trade. China's Housing Ministry press conference that began earlier today focused on some measures to boost the property sector but didn't release any specific amount for fiscal stimulus, disappointing investors. Iron ore futures are also under pressure amid concerns over high supply, ANZ Research analysts write in a note. Investors are keeping an eye for any further property stimulus measures in the ongoing press conference. The most-traded iron-ore contract on the Dalian Commodity Exchange is 1.0% lower at CNY780.5 a ton.([e-mail]; @ivy_jiahuihuang)

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(END) Dow Jones Newswires

10-17-24 1416ET