The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.

1204 ET--With the summer high-demand season approaching and refineries ramping up, it would make sense for OPEC+ to make another accelerated output increase in July, says Homayoun Falakshahi, head crude analyst at Kpler. OPEC+ raised its production targets by 411,000 barrels a day in May and agreed on a similar amount for June. Despite two accelerated increases and expectations of another in July, "the impact on prices in the near term may not be that bearish," Falakshahi says. Another reason for OPEC+ increases could be a response to supply growth in the Atlantic basin, making that oil more expensive for Asia, he adds. Meanwhile, WTI and Brent are down 2.6% on President Trump's optimism about reaching a nuclear deal with Iran. (anthony.harrup@wsj.com)

1204 ET - Crops growing in the U.S. Plains are being hit with increasingly dry conditions, according to the latest data from the U.S. Drought Monitor. The agency says that incidences of extreme drought are growing, particularly in Nebraska, where the eastern part of the state is now grappling with the same severity of drought that's gripped its western side. Dryness is also spreading in eastern Corn Belt states, although conditions remain considerably less severe. Overall, traders remain mostly unmoved by any thoughts of weather stress hitting crops. "Concern over Midwest drought stays low, and meaningful dryness on June 1st will be confined to the Southern Plains and Nebraska," Price Futures Group's Daniel Flynn says in a note. (kirk.maltais@wsj.com)

1149 ET - Kroger plans to hire another 15,000 associates as cashiers, baggers, deli and bakery clerks, pharmacy technicians and delivery drivers, the company said. The move aims to boost the customer experience, Kroger said, adding roles across its retail, supply chain, healthcare and delivery units. The added hires represent just a 3.7% increase to Kroger's more than 409,000 full- and part-time employees as of Feb. 1, according to its latest annual filing. The workforce expansion plans come after the grocery-store chain's failed attempt to takeover rival Albertsons to compete with bigger retail giants like Walmart and Amazon. (kelly.cloonan@wsj.com)

1058 ET - U.S. natural gas inventories increased by 110 billion cubic feet last week to 2,255 Bcf, putting supplies 57 Bcf or 2.6% above the five-year average, the EIA reports. The third straight triple-digit injection into underground storage was larger than the 83 Bcf average for the week, but in line with the 111 Bcf estimate in a Wall Street Journal survey of analysts. Inventories were 375 Bcf below their year-earlier level. Nymex natural gas futures are off 1.8% at $3.430/mmBtu. (anthony.harrup@wsj.com)

1039 ET - CBOT soybeans are lower after Conab, Brazil's crop agency, reported a record-sized harvest of soybeans this year. The agency estimates the harvest volume for the year at 168.3 million metric tons, which is the largest crop ever reported, it says. "These excellent yields were a reflection of favorable weather conditions and the high degree of professionalism of the producers," says the agency. Corn production was also strong, at an estimated 126.9 million tons, up nearly 10% from the previous year. CBOT corn has managed to stay positive in morning trade, up 0.2%. Soybeans are now down 2.2%. (kirk.maltais@wsj.com)

1035 ET - Live cattle futures on the CME continue to walk back from record highs, with the most-active contract down 1.3% to roughly $2.11 a pound. "Huge bearish key reversals yesterday in live cattle and feeder cattle," says Naomi Blohm of Total Farm Marketing in a note. If cattle finishes lower, it'll be the third straight negative close for the continuous contract, coming off of a record high of $2.17 a pound earlier this week. Traders and analysts question if this slide will be only temporary or may be a lasting easing in prices, says Blohm. Lean hog futures are down 0.5%. (kirk.maltais@wsj.com)

1013 ET - U.S. natural gas futures are lower ahead of the IEA's weekly storage data. Cooler than normal temperatures seen for the East and Midwest remain the bearish factor, BOK Financial's Dennis Kissler says in a note. "Still, in the longer term there is a lot of summer ahead of us and most analysts, me included, believe there remains a very strong power demand pull that could arise if we see above-average heat in June," he says. EIA storage data are expected to show a 111 Bcf injection for last week, according to a Wall Street Journal survey of analysts. That would increase the surplus over the five-year average to 58 Bcf from 30 Bcf the week before. Nymex natural gas is off 1% at $3.459/mmBtu. (anthony.harrup@wsj.com)

0950 ET - Russia, the world's largest exporter of wheat, is drawing down its inventories, says SovEcon in a note. The firm estimates Russian wheat stocks at 20.3 million metric tons, down from 27.5 million tons at this point last year. Stocks appear to have decreased at the same time as export sales, says the firm, adding that millers appear to be in no hurry to procure more wheat, "due to relatively high prices and expectations of the new crop." CBOT wheat is up 0.3% in early trading. (kirk.maltais@wsj.com)

0912 ET - Oil futures are lower after President Trump says the U.S. is getting close to a possible nuclear deal with Iran, which could lead to a lifting of sanctions on Iranian oil, while the market also digests a bearish monthly outlook from the International Energy Agency. The IEA nudged up its 2025 demand growth estimate by about 2% to 740,000 barrels a day, including growth of 650,000 b/d for the rest of the year, but also raised its supply growth forecast to 1.6 million b/d from 1.2 million b/d. Although recent trade deals eased pressure on crude prices, "increased trade uncertainty is expected to weigh on the world economy and, by extension, oil demand," the IEA said. WTI is down 2.8% at $61.36 a barrel, and Brent is off 2.7% at $64.29 a barrel. (anthony.harrup@wsj.com)

0654 ET - Gold futures slip as the global risk-on rally loses steam. Futures are down 0.2% at $3,181.40 a troy ounce, having fallen as low as $3,123.30 earlier in the session. The precious metal has partially recovered from earlier losses, though it remains down 3.9% on-week. Monday's better-than-expected U.S.-China trade deal had sparked a risk-on rally in the market, sapping bullion's safe-haven appeal and driving investors to take profits over the week. Market focus now turns to U.S. inflation data due later Thursday. The U.S. Producer Price Index should provide some clues as to the Federal Reserve's outlook for monetary policy easing, a boon for non-interest bearing bullion. (joseph.hoppe@wsj.com)

0607 ET - Palm oil prices closed lower, tracking lower soybean oil prices, said David Ng, a trader at Kuala Lumpur-based Iceberg X. A possible change to renewable biofuel credits in the U.S. also weighed on prices, Ng said. Crude palm oil futures are likely to find support at 3,750 ringgit/ton and face resistance at 3,950 ringgit/ton, he added. The Bursa Malaysia Derivatives contract for July delivery fell 61 ringgit to 3,862 ringgit/ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0501 ET - Pirelli delivered a strong set of first-quarter results, Jefferies analysts write in a research note. The Italian tire maker posted sales of 1.76 billion euros, adjusted EBIT of 279.8 million euros and a 15.9% adjusted EBIT margin against company-compiled consensus of 1.74 billion euros in sales, 270 million euros in adjusted EBIT and a 15.5% adjusted EBIT margin. The beat came after Pirelli warned that adjusted EBIT and cash flow could come at the lower end of guidance if President Trump's tariffs on the automotive industry remain in force. Pirelli shares trade 3.3% lower at 5.93 euros. (mauro.orru@wsj.com)

(END) Dow Jones Newswires

May 15, 2025 12:15 ET (16:15 GMT)

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