Solar Energy Index increased to a 4-week high of 35.20 USD. Over the past 4 weeks, Solar Energy Index gained 0.03%, and in the last 12 months, it decreased 22.87%.

Solar Energy Index Hits 4-week High

Brent crude oil futures rallied over 6% to $73.7 per barrel on Friday, paring some gains after hitting their highest level since February, as fears of a broader conflict in the Middle East intensified following Israel’s strike on Iran. While the attacks did not directly target oil infrastructure, investors remain wary of potential retaliation, especially given Iran’s strategic control near the Strait of Hormuz—a critical chokepoint for global oil shipments. Iran's April crude output stood at 3.305 million barrels per day, underscoring the region’s vital role in global energy supply. Adding to the bullish sentiment, data from the International Energy Agency showed a larger-than-expected drop in U.S. crude inventories last week, suggesting firm demand. Despite mounting geopolitical tensions, the IEA reassured markets that it holds 1.2 billion barrels of emergency reserves and stands ready to intervene if necessary.

Brent Rallies on Middle East Tensions, Supply Concerns

WTI crude oil futures surged over 6% to $72.70 per barrel on Friday, paring some gains after hitting their highest level since February, as fears of a broader conflict in the Middle East intensified following Israel’s strike on Iran. While the attacks did not directly target oil infrastructure, investors remain wary of potential retaliation, especially given Iran’s strategic control near the Strait of Hormuz—a critical chokepoint for global oil shipments. Iran's April crude output stood at 3.305 million barrels per day, underscoring the region’s vital role in global energy supply. Adding to the bullish sentiment, data from the International Energy Agency showed a larger-than-expected drop in U.S. crude inventories last week, suggesting firm demand. Despite mounting geopolitical tensions, the IEA reassured markets that it holds 1.2 billion barrels of emergency reserves and stands ready to intervene if necessary.

WTI Oil Jumps as Israel Strikes Iran

Wheat futures rallied 3% to above $5.40 per bushel on Friday, bouncing back from a four-week low amid bargain buying and improved sentiment across the grain complex. The recovery was supported by strength in soybeans and corn, which surged following the Biden administration’s proposed biofuel blending mandate. Traders viewed wheat’s recent dip as a buying opportunity, particularly with global supply concerns lingering. Additional momentum came from a sharp rise in crude oil prices after Israel launched airstrikes on Iran, heightening geopolitical risks and boosting broader commodity markets. Wheat also benefited from technical buying and the improved market tone. Meanwhile, the USDA slightly raised its 2025/26 U.S. wheat supply outlook, projecting total production at 1.921 billion bushels—up 115,000 from last month—thanks to increases in Soft Red and White Winter wheat that offset lower Hard Red Winter output.

Wheat Futures Rebound

Soybean futures climbed above $10.65 per bushel on Friday, hitting a three-week high after the Trump administration proposed biofuel blending requirements that surpassed market expectations. The rally followed the Environmental Protection Agency’s plan to increase the volume of biofuels that refiners must blend into the nation’s fuel supply over the next two years. Soyoil, a key biodiesel feedstock, surged on the news. Analysts said the move would significantly boost domestic soybean crush demand in 2026 and 2027. The proposal was seen as a major victory for the biofuels industry, which had been actively lobbying for such changes. Adding to the bullish sentiment, soybean prices were further supported by a sharp rise in crude oil prices after Israel launched airstrikes on Iran early Friday.

Soybean Rallies to 3-Week High on Biofuel Mandate

The Baltic Exchange's dry bulk sea freight index, which tracks rates for vessels transporting dry commodities, advanced 3.4% to 1968 points on Friday, the highest level since October. The capesize index, which typically transports 150,000-ton cargoes such as iron ore and coal, soared 4.7% to 3722 points, the highest since July; and the panamax index, which usually carries 60,000-70,000 tons of coal or grain, rose 1.9% to a more than two-month high of 1401 points. Among smaller vessels, the supramax index increased 3 points to a near one-week high of 936 points. On the week, the Baltic index soared 20.5%.

Baltic Exchange Dry Index Jumps 20% on the Week

Rapeseed increased to a 4-week high of 494.00 EUR/T. Over the past 4 weeks, Rapeseed gained 1.9%, and in the last 12 months, it increased 5.5%.

Rapeseed Hits 4-week High

Canola increased to a 20-month high of 736.40 CAD/T. Over the past 4 weeks, Canola gained 2.1%, and in the last 12 months, it increased 21.2%.

Canola Hits 20-month High

Soybeans increased to a 4-week high of 1071.00 USd/Bu. Over the past 4 weeks, Soybeans lost 0.97%, and in the last 12 months, it decreased 9.42%.

Soybeans Hits 4-week High

Canola increased to a 4-week high of 735.30 CAD/T. Over the past 4 weeks, Canola gained 1.74%, and in the last 12 months, it increased 20.76%.

Canola Hits 4-week High

Heating oil futures surged past $2.30 per gallon, reaching their highest level since late February, amid mounting Middle East tensions. Israel launched airstrikes on Iran, targeting nuclear facilities, missile production sites, and top military officials, calling it the beginning of a long-term campaign to prevent Tehran from acquiring nuclear weapons. In response, Iran fired around 100 drones toward Israeli territory. The flare-up comes ahead of the sixth round of US-Iran nuclear talks, set for Sunday in Oman. Meanwhile, EIA data showed a surprise supply build, with distillate inventories rising by 1.246 million barrels—twice the expected increase—and heating oil stocks climbing by 487,000 barrels, the largest weekly gain since January.

Heating Oil Hits 3-Month High as Middle East Tensions Escalate

US gasoline futures rose above $2.20 per gallon, briefly touching $2.30 for the first time since April 2, as escalating Middle East tensions fueled supply concerns. Israel launched strikes on Iran, targeting nuclear sites, ballistic missile facilities, and senior military commanders, calling the action the beginning of a sustained effort to prevent Tehran from developing a nuclear weapon. In response, Iran fired around 100 drones toward Israeli territory. The escalation comes just days before the sixth round of US-Iran nuclear talks, set for Sunday in Oman. Adding to price support, US crude inventories fell by 3.644 million barrels last week, exceeding market expectations of a 2.5 million-barrel draw, according to EIA data. Stockpiles at the Cushing hub also declined by 403,000 barrels. However, gasoline and distillate inventories rose more than expected, increasing by 1.504 million and 1.246 million barrels, respectively.

Gasoline Futures Jump on Middle East Escalation

UK natural gas futures approached 91 pence per therm, the highest level since early April, as part of a broader surge across energy markets driven by escalating tensions in the Middle East. The rally followed Israel’s wave of strikes against Iran, targeting nuclear infrastructure and military facilities, and resulting in the deaths of two senior commanders. Israel has warned of further action, while Iran has vowed retaliation and already deployed drones toward Israeli territory. The situation has heightened concerns over potential disruptions to LNG shipments from Qatar, one of the world’s largest exporters and a key supplier to the UK. The UK is particularly vulnerable to supply shocks due to limited domestic storage capacity and a reliance on imports via continental Europe. With Russian pipeline flows halted following the expiration of the Ukraine transit deal, Europe has increasingly turned to LNG to meet its needs, intensifying competition for supply and driving prices higher.

UK Natural Gas Prices Highest Since April

US natural gas futures edged above $3.50 per MMBtu, tracking broader gains across energy markets amid escalating tensions in the Middle East. However, the increase was more muted compared to the sharp moves seen in oil and other gas benchmarks. The geopolitical spike followed Israel’s wave of strikes against Iran. Meanwhile, US natural gas fundamentals remain relatively stable. Storage levels have improved since a colder-than-expected winter depleted inventories. According to the EIA, the week ending June 6 saw another triple-digit storage build. While inventories are 9% lower year-over-year, they remain 5.4% above the five-year seasonal average, signaling adequate supply. Still, the rapid growth in LNG exports is raising concerns about tightening supply and upward pressure on prices later this year. In addition, forecasts call for hotter-than-normal temperatures across much of the US, which could boost demand for gas-fired cooling and exacerbate pressure on inventories.

US Natural Gas Prices Edge Higher

UK Gas increased to a 9-week high of 91.23 GBp/thm. Over the past 4 weeks, Natural Gas UK GBP gained 9.96%, and in the last 12 months, it increased 9.13%.

UK Gas Hits 9-week High

Methanol increased to an 8-week high of 2467.00 CNY/T. Over the past 4 weeks, Methanol lost 3.11%, and in the last 12 months, it decreased 8.85%.

Methanol Hits 8-week High

European natural gas futures rose nearly 3% to €37.5/MWh on Friday, the highest level since early April, tracking a broader surge in energy markets amid escalating tensions in the Middle East. Israel had launched a wave of strikes against Iran, targeting its nuclear infrastructure and military facilities, killing two top commanders. Israel has warned of further action, while Iran has vowed retaliation and has already sent drones toward Israeli territory. In addition to geopolitical risks, other factors are contributing to upward pressure on gas prices. Wind power generation is expected to decline over the weekend in northwestern Europe, reducing the supply of renewable energy. In France, concerns are mounting over a potential reduction in nuclear output after the national regulator reported early signs of possible stress corrosion in a reactor. Meanwhile, unseasonably hot weather across much of Europe is driving up electricity demand for air conditioning.

TTF Natural Gas Prices Rise 3%

Iron ore futures rose to around CNY 707 per tonne on Friday, hovering near a three-week high even as geopolitical tensions and global trade uncertainty weighed on broader market sentiment. Prices remained resilient despite a sharp escalation in Middle East conflict, after Israel launched a preemptive strike on Iran’s nuclear facilities, triggering retaliatory drone attacks from Tehran. At the same time, concerns about US trade policy continued to cast a shadow over the outlook as President Donald Trump reiterated threats of unilateral tariffs to pressure foreign governments into new trade deals. Meanwhile, the China Iron and Steel Association warned that a worsening price war in the electric vehicle sector is placing pressure on steelmakers. Automakers are reportedly pushing suppliers to lower prices on steel plates used in vehicle manufacturing, squeezing margins and potentially curbing raw material demand.

Iron Ore Climbs Despite Geopolitical, Trade Headwinds

Steel rebar futures hovered around CNY 2,980 per tonne on Friday, ending the week largely flat as investors weighed mounting geopolitical tensions and economic headwinds. The market remained cautious after Israel launched a preemptive strike on Iran’s nuclear facilities, prompting retaliatory drone attacks from Tehran. The sharp escalation heightened global risk aversion, though its immediate impact on steel demand appeared limited. Meanwhile, uncertainty surrounding US trade policy continued to cloud the outlook as President Donald Trump threatened to impose unilateral tariffs to pressure foreign governments into trade deals. Meanwhile, the China Iron and Steel Association warned that a deepening price war in the electric vehicle sector is straining steelmakers. Automakers are reportedly pressuring suppliers to cut prices on steel plates used in vehicle production, further compressing industry margins.

Steel Prices Steady Amid Geopolitical, Trade Uncertainty

Zinc decreased to a 5-week low of 2619.00 USD/T. Over the past 4 weeks, Zinc lost 5.04%, and in the last 12 months, it decreased 5.32%.

Zinc Hits 5-week Low

UK Gas decreased to a 14-month low of 62.67 GBp/thm. Over the past 4 weeks, Natural Gas UK GBP gained 0.71%, and in the last 12 months, it increased 1.34%.

UK Gas Hits 14-month Low

TTF Gas increased to a 9-week high of 38.23 EUR/MWh. Over the past 4 weeks, Natural Gas EU Dutch TTF gained 2.03%, and in the last 12 months, it increased 1.65%.

TTF Gas Hits 9-week High

Copper futures dropped about 1% to below $4.80 per pound on Friday and were on track to end the week lower, as heightened geopolitical tensions and mounting economic uncertainty triggered a broad risk-off shift in global markets. The decline followed Israel’s preemptive strike on Iran, targeting its nuclear facilities and prompting immediate retaliation from Tehran via drone attacks. The rapid escalation raised fears of a prolonged conflict in the Middle East, weighing heavily on investor sentiment. Adding to the bearish tone, US President Donald Trump renewed threats of unilateral tariffs to pressure trade partners, further clouding the global demand outlook. Meanwhile, concerns over weakening demand from top consumer China continued to mount. Domestic smelters have increasingly turned to exports, indicating oversupply and sluggish local consumption.

Copper Falls on Risk-Off Sentiment

Malaysian palm oil prices climbed over 1.5% to above MYR 3,900 per tonne, rebounding from a muted prior session as they tracked gains in rival edible oils on the Dalian and Chicago exchanges. Crude oil also surged nearly 10%, reaching multi-month highs after Israel launched airstrikes on Iran without U.S. support, escalating Middle East tensions. In top buyer India, palm oil imports rose to a six-month high in May, driven by low domestic inventories and wider discounts to soyoil and sunflower oil. Meantime, an industry expert noted that exports could peak around August. Supporting this view, data from the Malaysian Palm Oil Board showed May shipments jumped 25.6% from April to 1.39 million tonnes—the highest since November. Still, for the week, palm oil futures remain down 0.2%, as prices remain near seven-month lows amid persistent concerns over rising inventories and expectations of continued production growth through September, fueled by favorable weather and replanting activity.

Palm Oil Climbs on Robust Demand Outlook, Tensions in Middle East

Gold rallied jumped above $3,400 on Friday, reaching its highest level in over a month, as investors sought safety amid escalating geopolitical tensions and economic uncertainty. The rally came after Israel launched a preemptive strike against Iran, significantly heightening fears of broader conflict in the Middle East. Israeli Defense Minister Israel Katz declared a special state of emergency and warned of an imminent missile and drone attack targeting Israeli civilians. Safe-haven demand was further boosted by growing uncertainty over US trade policy. President Donald Trump threatened to impose unilateral tariffs to pressure trading partners, though Treasury Secretary Scott Bessent suggested the current 90-day tariff pause could be extended. On the economic front, softer-than-expected US consumer and producer inflation data earlier this week increased expectations for additional Federal Reserve rate cuts this year, providing further support for non-yielding assets like gold.

Gold Climbs on Major Escalation in Middle East

Brent crude oil futures surged nearly 6% to above $73 per barrel, hitting a fresh two-month high, after Israel launched a preemptive strike against Iran, raising fears of supply disruptions. Israel’s defense minister declared a “special situation,” with reports suggesting Iran could soon retaliate with missile and drone attacks on Israeli targets, including civilian areas. The risk of a wider Middle East conflict threatens potential disruptions to the Strait of Hormuz, a key chokepoint for about 20% of global oil flows. Adding to geopolitical risks, the US is preparing a partial evacuation of personnel from the region after Iran threatened to target US bases if nuclear talks fail. Further supporting prices, EIA data showed US crude stocks fell by 3.6 million barrels last week, exceeding forecasts and signaling strong demand, while softer US inflation strengthened expectations of Fed rate cuts by September, potentially boosting economic growth and oil consumption.

Brent Soars Nearly 6%

WTI crude oil futures surged nearly 6% to above $72 per barrel, hitting a fresh two-month high, after Israel launched a preemptive strike against Iran, raising fears of supply disruptions. Israel’s defense minister declared a “special situation,” with reports suggesting Iran could soon retaliate with missile and drone attacks on Israeli targets, including civilian areas. The risk of a wider Middle East conflict threatens potential disruptions to the Strait of Hormuz, a key chokepoint for about 20% of global oil flows. Adding to geopolitical risks, the US is preparing a partial evacuation of personnel from the region after Iran threatened to target US bases if nuclear talks fail. Further supporting prices, EIA data showed US crude stocks fell by 3.6 million barrels last week, exceeding forecasts and signaling strong demand, while softer US inflation strengthened expectations of Fed rate cuts by September, potentially boosting economic growth and oil consumption.

Oil Soars Nearly 6%

Brent Crude Oil increased 5% to 72.825 USD/Bbl

Brent Crude Oil is up by 5%

Gasoline increased to a 10-week high of 2.20 USD/Gal. Over the past 4 weeks, Gasoline gained 2.5%, and in the last 12 months, it decreased 8.72%.

Gasoline Hits 10-week High

Wheat decreased to a 4-week low of 525.00 USd/Bu. Over the past 4 weeks, Wheat gained 1.69%, and in the last 12 months, it decreased 15.16%.

Wheat Hits 4-week Low

Wheat futures dropped below $5.30 per bushel, hitting a 3½-week low amid sluggish global export demand. Market sentiment was pressured by weak international interest, as traders cited limited competitiveness of US wheat and strong global supply. Despite the price dip, the USDA slightly raised its 2025/26 US wheat supply outlook, projecting total production at 1.921 billion bushels—up 115,000 bushels from last month—driven by gains in Soft Red and White Winter wheat, which offset a drop in Hard Red Winter output. Exports were revised higher by 25 million bushels to 825 million on solid early sales, particularly for HRW wheat. As a result, ending stocks were lowered by 25 million bushels to 898 million, although they remain 7% above last year’s level. The season-average farm price forecast was raised by 10 cents to $5.40 per bushel, reflecting tighter supplies.

Wheat Slips to 3½-Week Low as Export Demand Lags

Soybean futures fell toward $10.40 per bushel, hitting their lowest level since June 4, as weak demand for soyoil and biodiesel fuel weighed on the market. Despite the price decline, the USDA kept its 2025/26 US soybean supply, usage, and average price forecast unchanged at $10.25 per bushel. Bearish sentiment in soy product markets also pressured futures, with soybean meal and oil prices projected at $310 per short ton and 46 cents per pound, respectively. On the global front, beginning stocks were raised due to reduced soybean crush in China during the prior marketing year. Slight increases in crush forecasts for Pakistan, South Africa, and the UK led to a modest bump in projected global use. However, ending stocks were lifted to 125.3 million tons, primarily due to higher inventories in China. These global adjustments reinforced a cautious tone in the US soybean market, keeping futures under pressure despite steady domestic fundamentals.

Soybean Slides on Weak Demand, Steady USDA Outlook

Rice futures traded above $13.7 per hundredweight, the highest level in nearly two months, driven by a weaker dollar, domestic quality scares and looming South Asian flood risks. US heavy-metal contamination reports prompted local restocking at elevated bids, while late-June monsoon forecasts for India and Bangladesh, set for record plantings, have injected fresh yield uncertainty. North American ethanol and grain-by-product demand has also firmed old-crop prices. Balancing these forces, the USDA projects a record 2025/26 US harvest of 538.7 million cwt and ending stocks rising to 47.5 million cwt, and global output from India, China and Bangladesh is set to exceed 500 million tonnes, with Indonesia’s ample reserves further capping any sustained rally.

Rice Hits 2-Month High

Corn futures rose to around $4.40 per bushel rebounding from a six-month low of $4.335 seen June 9th, as US supply concerns and firm demand dynamics outweigh ample global harvest prospects. The USDA’s June supply-and-demand update trimmed 2024/25 ending stocks by 1.3 million tonnes to 44.5 million, underscoring tighter domestic balance sheets, while weekly export inspections have consistently exceeded forecasts, signaling strong overseas appetite. Meanwhile, continued dryness across the US Midwest, where just 66% of the crop was rated good to excellent in early June versus 72% last year, has raised fresh yield risks as the critical pollination window approaches. Ethanol crack spreads, supported by healthy refinery margins, are also propping up corn’s biofuel demand. Offsetting these drivers, Brazil’s “safrinha” was raised by Conab to a record 101 Mt and Black Sea forecasts for 2025 (Romania and Ukraine) have jumped over 70% year-on-year, capping any runaway rally.

Corn Rebounds From 6-Month Lows

Lumber futures rose past $610 per thousand board feet, a ten-week high, as steady construction activity met tightening supply and mounting trade barriers. US homebuilding remains steady with single-family starts flat at 1.36 million units in April and permits edging lower, while Canadian multi-unit starts jumped 34%, keeping mill orders firm. Canadian harvests are constrained by pine-beetle infestations, prairie wildfires that have burned more than 200,000 hectares this spring and strict cut limits that left British Columbia nearly 42% below its allowable quota in 2023. In the US, sawmill utilization stalled in the mid-70% range despite recent capacity additions. Tariffs of roughly 14.5% on Canadian softwood, along with threats of higher levies, have discouraged cross-border shipments, while major exporters divert supply to Asian and European markets. Elevated fuel and transportation costs further raise delivered prices.

Lumber Reaches 10-Week Highs

Arabica coffee futures eased to around $3.49 per pound, their lowest in over a week, pressured by expectations of increased supply as Brazil’s new harvest gathers pace under favorable weather. Dealers noted that the 2025/2026 Brazilian harvest is advancing at a steady pace, with generally favorable weather and increased activity in Arabica picking. Recent rainfall in southern Minas Gerais—the country’s main coffee-growing region—had minimal impact, and the harvest reached 28% of the expected output, according to a June 6 report from consultancy Safras & Mercado. Although slightly behind last year’s pace of 29%, the current progress is already above the five-year average of 27%. Looking ahead, forecasts of colder weather in Brazil may lend some support to prices in the coming months.

Arabica Coffee Futures at Over 1-Week Low

Heating oil futures fell to around $2.18 per gallon, easing from the ten-week high of $2.209 seen June 11th, as the recent pullback in crude-oil benchmarks weighed on fuel values amid fresh trade uncertainty and ample distillate inventories. President Trump’s announcement that he will dispatch formal tariff letters to key trading partners in the coming weeks, ahead of the 90-day pause on reciprocal levies expiring next month, has rattled demand expectations for energy. At the same time, the latest EIA data showed distillate stocks swelling by 1.246 million barrels, double the forecast, and heating-oil inventories surging by 487,000 barrels, the largest build since January, intensifying downward pressure on prices despite seasonally strong consumption forecasts.

Heating Oil Retreats From 10-Week Highs

The Baltic Exchange's dry bulk sea freight index, which tracks rates for vessels transporting dry commodities, advanced for a second day on Thursday, jumping 9.6% to its highest since October 7 at 1,904 points. The capesize index, which typically transports 150,000-ton cargoes such as iron ore and coal, soared 14.8% to a peak since September 30 at 3,555 points; and the panamax index, which usually carries 60,000-70,000 tons of coal or grain, rose 2.8% to a six-week high of 1,375 points. Among smaller vessels, the supramax index increased 11 points to a near one-week high of 933 points.

Baltic Dry Index at Over 8-Month High

Gold climbed further on Thursday, approaching $3,390 per ounce and hitting its highest level since early May, as investors reacted to softer US economic data and rising geopolitical risks. The US Producer Price Index rose just 0.1% in May, below the expected 0.2%, while initial jobless claims held at an eight-month high, and continuing claims surged to their highest level since November 2021—both exceeding forecasts. These signs of a cooling labor market, along with weaker-than-expected CPI and PPI data, increased market expectations of a Federal Reserve rate cut as early as September, with 50 basis points of easing now priced in for 2025. On the geopolitical front, the US ordered embassy staff to leave Baghdad after Iran threatened to strike US bases if nuclear talks collapse. Adding to market uncertainty, President Trump said he would send letters to key trading partners within weeks outlining new unilateral tariffs.

Gold Rises on Weak US Data and Heightened Geopolitical Risk

Sugar decreased to a near 4-year low of 16.32 USd/Lbs. Over the past 4 weeks, Sugar lost 10.18%, and in the last 12 months, it decreased 16.33%.

Sugar Hits Near 4-year Low

US natural gas futures rose to $2.60/MMBtu on Thursday, supported by lower production and signs of rising LNG demand as facilities exit maintenance. Cameron LNG in Louisiana is set to boost intake, with gas flows rising to a four-week high of 1.5 bcfd, up from a 1.4 bcfd monthly average. Meanwhile, average gas output in the Lower 48 states eased to 105.0 bcfd so far in June, slightly below May’s 105.2 bcfd and well below March’s record of 106.3 bcfd, due to routine spring maintenance. Warmer-than-normal weather is expected across much of the US through June 26, which may drive up cooling demand. Still, analysts forecast another triple-digit storage build for the week ended June 6, marking what could be a record-tying seventh such injection.

US Natgas Prices Rebound Ahead EIA Report

European natural gas futures climbed above €36/MWh, marking a second consecutive session of gains, driven by hotter-than-normal weather across the continent that’s pushing up demand for air conditioning. Forecasts indicate that temperatures will remain high over the next two weeks, with cooling demand set to reach its peak since July 2022. This surge coincides with the approach of peak summer in both Europe and Asia, intensifying competition for the already tight global LNG supply. While European gas storage has surpassed 50%, it still lags behind average levels after last winter left reserves at just 33.5%. The end of the Ukraine transit deal and the resulting halt in Russian pipeline flows have increased Europe’s reliance on LNG, which has so far been more accessible due to weak demand from Asia. However, supply has been partially constrained by ongoing maintenance work in Norway.

TTF Prices Rise for 2nd Day

Steel rebar futures fell to around CNY 2,960 per tonne on Thursday, pulling back from a two-week high as renewed global trade uncertainty triggered a broader risk-off sentiment across markets. The decline came after US President Donald Trump threatened to impose unilateral tariffs on trading partners within two weeks to push forward new trade deals. Sentiment was also dented as the initial optimism from reported progress in US-China trade talks faded, despite Trump’s claim that a deal with Beijing is “done.” Meanwhile, the China Iron and Steel Association warned that an ongoing price war in the electric vehicle market is putting pressure on steelmakers. Automakers are reportedly pushing producers to cut prices on steel plates used in vehicle manufacturing, further squeezing margins across the industry.

Steel Prices Fall on Risk-Off Sentiment

Copper futures held near $4.80 per pound on Thursday, after falling nearly 2% in the previous session, as mounting concerns over weakening demand in China, the world’s top consumer, continued to weigh on sentiment. Domestic smelters in China are increasingly turning to exports to offload surplus copper, highlighting softening local consumption. Meanwhile, LME copper inventories are trending lower, with notable volumes being shipped to the US in anticipation of potential import tariffs. On the trade front, US President Donald Trump threatened to impose unilateral tariffs on trading partners within two weeks to secure better trade deals. However, Treasury Secretary Scott Bessent indicated that the administration may extend the 90-day pause on reciprocal tariffs for countries showing “good faith” in negotiations. Market optimism from earlier progress in US-China trade talks has also started to fade, despite Trump’s assertion that a deal with Beijing is “done.”

Copper Holds Decline on China Demand Worries

Malaysian palm oil prices rose about 1% to trade above MYR 3,850 per tonne, snapping a two-session decline, supported by stronger soybean oil on the CBOT. Sentiment was lifted after an industry expert at a Jakarta forum said demand from key buyers like India and China is expected to rise in the coming months, with recent price corrections offering attractive entry points. Export volumes are also likely to peak around August. Industry data showed May shipments jumped 25.6% from April to 1.39 million tonnes, the highest since November. However, prices are still down about 1% so far this week, hovering at seven -month lows, as bearish data pressured sentiment. End-May stocks rose 6.65% to 1.99 million tonnes—the third monthly rise and highest since September 2024. Crude palm oil output also grew for a third month, up 5.05% to 1.77 million tonnes. A fragile trade truce between the U.S. and China also weighed on prices, as recent talks offered little in terms of concrete outcomes.

Palm Oil Rises After Two Days of Losses

Gold rose toward $3,370 per ounce on Thursday, as escalating US-Iran tensions reignited safe-haven demand, while weaker-than-expected US consumer inflation data bolstered bets of Federal Reserve rate cuts. The US government ordered the departure of embassy staff from Baghdad after Iran threatened to attack US bases if talks over its nuclear program fall through. Meanwhile, markets are now pricing in a 50bps rate cut from the Fed by the end of the year, with traders closely watching the PPI data data due later today for further clues ahead of the US central bank’s policy meeting next week. On the trade front, Trump announced on Wednesday that a deal had been reached to revive a fragile truce in the US-China trade war after American and Chinese negotiators agreed on a framework covering tariff rates. He also signaled a willingness to extend the July 8 deadline for finalizing talks with trading partners before higher US tariffs are imposed.

Gold Gains on Rising US-Iran Tensions, Soft US CPI Data

Brent crude oil futures rose to around $69.9 per barrel on Thursday, the highest level in over two months, as rising tensions between the US and Iran sparked fears of supply disruptions. The US is preparing a partial evacuation of some personnel in the Middle East after Iran threatened to strike US bases in the region if nuclear negotiations fail. Further supporting prices, the US and China on Tuesday agreed to a framework and implementation plan to ease tariff and trade tensions, boosting optimism for energy demand from the world’s two largest oil consumers. On the economic front, softer-than-expected US consumer inflation data reinforced expectations that the Federal Reserve could begin cutting rates by September. Also, data released by US EIA showed crude oil stocks fell by 3.6 million barrels in the week ended June 6, more than forecasts of a 2 million-barrel decline, signaling strong demand.

Brent Climbs as US-Iran Tensions Escalate

WTI crude oil futures rose to around $68.4 per barrel on Thursday, the highest level in over two months, as rising tensions between the US and Iran sparked fears of supply disruptions. The US is preparing a partial evacuation of some personnel in the Middle East after Iran threatened to strike US bases in the region if nuclear negotiations fail. Further supporting prices, the US and China on Tuesday agreed to a framework and implementation plan to ease tariff and trade tensions, boosting optimism for energy demand from the world’s two largest oil consumers. On the economic front, softer-than-expected US consumer inflation data reinforced expectations that the Federal Reserve could begin cutting rates by September. Also, data released by US EIA showed crude oil stocks fell by 3.6 million barrels in the week ended June 6, more than forecasts of a 2 million-barrel decline.

Oil Climbs as US-Iran Tensions Escalate

Heating oil futures surged to about $2.20 per gallon, a ten-week high, driven by tightening crude supplies, easing trade frictions and firm seasonal demand expectations. US crude inventories plunged by 3.64 million barrels in the week to June 6th, far exceeding the 2.5 million-barrel draw forecast, underscoring upstream tightness. Geopolitical optimism following President Trump’s “deal done” declaration with China and commitments to restore the Geneva tariff truce have stoked hopes for stronger global oil consumption, even as OPEC+ readies a 411,000 bpd output increase in July. Meanwhile, above-normal June temperature forecasts point to robust residential and commercial heating-oil use, keeping the market in backwardation. However, distillate inventories swelled by 1.25 million barrels, twice the anticipated gain, and heating-oil stocks jumped by 487,000 barrels, the largest build since January, tempering the rally.

Heating Oil Rises to 10-Month High

Brent crude oil futures 4.3% to settle at $69.8 per barrel on Wednesday, after President Donald Trump announced a preliminary trade deal with China, lifting hopes for stronger energy demand from the world’s two largest economies. The agreement includes China supplying rare earth minerals and the US easing restrictions on Chinese students, though final approval is still pending. Analysts noted that while trade-related risks have eased, uncertainty remains around the deal’s impact on global demand. Meanwhile, tensions with Iran persisted, with Tehran threatening US bases if nuclear talks fail, keeping pressure on supply. US crude inventories fell more than expected last week, and gasoline demand showed signs of strengthening. Softer-than-expected inflation data also boosted expectations for a Fed rate cut, which could further support oil demand.

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