The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.
1604 ET - Natural gas futures post their biggest one-day gain in six weeks, settling up 4.5% at $2.965/mmBtu. Lower expectations for end-of-season storage levels following a string of below-average injections could be behind the rise, which is also "partly due to a short-covering rally as bears are overweight via commitment of traders and rushed to exit when prices worked against them," NatGasWeather.com says in a note. Numerous bearish factors remain, including a near-term seasonal decline in weather-driver demand and a strong El Niño weather pattern "with many forecasts predicting a warmer-than-normal winter across the northern U.S.," the forecaster adds. (anthony.harrup@wsj.com)
1542 ET - Oil futures extend their losing streak to five sessions on optimism about oil flows out of the Middle East with Saudi Arabia set to restore its damaged pipeline while dark transits continue through the Strait of Hormuz. Efforts to bring the U.S. and Iran back to the negotiating table add downward pressure on prices.The restart of the East-West pipeline and increasing shipments through the strait, along with seemingly good news on the diplomatic front "is all helping to bring oil prices down," says Roukaya Ibrahim of BCA Research. WTI for October goes off the board at $94.59 a barrel, down 1.2%, and the most-active November contract falls 2% to $90.52. Brent settles down 1.1% at $99.25. (anthony.harrup@wsj.com)
1534 ET - The strength seen in the trading following the last Cattle on Feed report faded out, with live cattle closing down 1.2% to $2.1935 a pound. Analysts this morning had anticipated cattle futures to continue climbing, making the move lower somewhat of a surprise for traders. But the USDA and Texas' Department of Agriculture says that a port between the U.S. and Mexico in Del Rio, Texas is being reopened to livestock exports - another step in reopening the border after cases of New World Screwworm hit the U.S. side of the border in June. Lean hogs closed up 1.6% to 70.925 cents a pound. (kirk.maltais@wsj.com)
By Joseph Wilkins and Kirk Maltais Bitcoin pulled back after Monday's blockbuster rally, but is still hovering around its highest levels since late January.
The flagship cryptocurrency partly pared earlier losses to trade 0.6% lower at $86,443, having briefly punched through $87,000 in the previous session. Bitcoin has gained over 12% in the past seven days, according to data from Coinglass.
The move caused some market participants to declare an end to the "crypto winter" that has kept prices depressed and sentiment low since October's all-time high.
"Price increases of this magnitude and higher typically denote the beginning of new bull markets rather than bear market recoveries that are eventually capped off," said analysts for Bitfinex in a note published this week.
Monday's surge was partially anchored by fund investors moving capital back into bitcoin ETFs. Coinglass data shows a net inflow of nearly $1 billion into bitcoin ETFs on Monday, with fund inflows exceeding $1.5 billion since the latter half of last week.
Bitcoin's gains reflect a resurgence in risk appetite among investors, but macro conditions remain a counterweight to cryptocurrencies and other commodities.
"Crypto can benefit from liquidity optimism and risk-on flows, but with the Fed, ECB, BOE and BOJ all leaning hawkishly, the asset class remains exposed to any renewed tightening in financial conditions," said Patrick Munnelly, a partner at Tickmill Group, in a note.
Cryptocurrency markets had defied two potential hurdles--a failure to pass the Clarity Act and the Federal Reserve's quarter-point rate hike--to finish last week higher.
The wider blockchain ecosystem is also benefiting from a return of risk appetite, with Strategy Inc. rising roughly 10% since the start of the week. Michael Saylor's bitcoin treasury firm revealed on Monday that it bought $75.7 million of bitcoin last week--its first purchase since Aug. 31.