Palm Oil Ends Higher Amid Lower Supply — Market Talk

Base metal prices are mixed, with LME three-month copper flat at $9,174 a metric ton and LME three-month aluminum down 0.5% at $2,615 a ton. Metal prices rebounded on-week as the U.S. pushed back Canadian and Mexican tariffs one month, but trade tensions and global growth risks are still pressing, RBC Capital Markets' Sam Crittenden says. The U.S. imposed another Chinese import tariff of 10%, while China retaliated with fresh levies, including critical mineral export restrictions. President Trump and China's President Xi will talk over the coming days and U.S. tariffs won't be implemented until Feb. 10, so they could strike a deal before implementation, Crittenden writes. Tariff uncertainty has prompted a significant disconnect between LME and U.S. commodities exchange Comex copper pricing, with the market factoring in more potential trade disputes, the analyst adds. (joseph.hoppe@wsj.com)

China's counter tariffs against the U.S. could affect long-term liquefied natural gas contract negotiations, Goldman Sachs says. Beijing's decision to impose sanctions on American LNG and crude oil is expected to have limited implications for energy prices. This is because affected U.S. volumes are likely to find alternative buyers and China can secure supplies from other sources. But "we see a potential pause in new long-term LNG contract negotiations between China buyers and U.S. LNG export facilities," analysts at the bank say. "Given that most proposed U.S. LNG facilities require that a significant portion of their capacity is contracted under long-term deals in order to obtain financing, such a pause might delay new U.S. LNG export facilities reaching a final investment decision." (giulia.petroni@wsj.com)

European natural-gas prices rise after settling more than 3% lower in the previous session on news that China's counter tariffs against the U.S. target LNG imports. "The move could keep more U.S. LNG in the Atlantic and increase demand for the super-chilled fuel elsewhere," ANZ Research analysts say. "The specter of more U.S. LNG in the European market eased concerns of shortages that have emerged this year." Still, concerns over fast-depleting inventories across the continent continue to dominate market sentiment, keeping prices sustained. The benchmark Dutch TTF contract is up 1.2% to 52.65 euros a megawatt hour after breaking above 54 euros earlier this week. (giulia.petroni@wsj.com)

Gold futures rise to a fresh record for the fifth consecutive session on geopolitical uncertainty. Futures are up 0.6% at $2,893.10 a troy ounce, having touched $2,896 earlier in the session. Safe-haven assets continue to see increased demand on growing global uncertainties under President Trump's hectic lead, with the prospects that the first weeks of the administration are just a foretaste of what is to come over the next four years, Swissquote Bank's Ipek Ozkardeskaya says. Gold is the best hedge for protecting a portfolio from Trump worries, Ozkardeskaya writes in a note. More international relations chaos means greater demand--especially from central banks looking to reduce U.S. exposure should Trump turn his focus on their countries--Ozkardeskaya says. "At this pace, Trump makes $3,000 [an ounce] look like an easy target," the analyst adds. (joseph.hoppe@wsj.com)

Oil prices edge lower in early trade despite U.S. President Trump ramping up pressure on Iran. Brent crude is down 0.7% to $75.68 a barrel, while WTI falls 0.6% to $72.25 a barrel. Trump signed a directive restoring his "maximum pressure" campaign on Tehran with the aim to stop the country from obtaining a nuclear weapon. Stricter enforcement of sanctions could put as much as 1 million barrels a day of oil supply at risk, according to ING analysts. "However, reduced flows from Iran will not help in lowering oil prices, something that President Trump is very keen to achieve," they say. "He would need to see OPEC increase oil output to offset any potential Iranian losses." Prices are pressured by fears that a trade war between the U.S. and China could hurt global growth and increase inflationary pressures, damping demand for crude. (giulia.petroni@wsj.com)

Methanol decreased to an 8-week low of 2567.00 CNY/T. Over the past 4 weeks, Methanol lost 5.11%, and in the last 12 months, it increased 2.95%.