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

0349 GMT - Chinese iron-ore futures are down in morning trade as market sentiment weakens due to the number of Covid-19 infections in Beijing swelling to their highest level in four months. Analysts from Citic Futures expect weaker demand in the short term, given the Covid-19 flare-ups and sluggish property sales in the country's lower-tier cities. Still, they say the drop in prices is likely to be limited given that the government's supportive economic policies should take effect in the fourth quarter. The most-traded January iron-ore contract on the Dalian Commodity Exchange is 2.5% lower at CNY670.50 a ton. (bingyan.wang@wsj.com)

0258 GMT - Malaysian palm oil prices are higher amid worries that floods in major growing regions could disrupt supply, Apex Securities analysts say in a research note. Investors are also on alert for a potential import-tax increase for palm oil from top buyer India, the brokerage adds. The Bursa Malaysia Derivatives contract for January delivery rises MYR51 to MYR4,169 a metric ton. (yiwei.wong@wsj.com)

0210 GMT - RHB Investment Bank maintains neutral rating on auto and auto parts sector amid a cautious sales outlook for 2023 due to macroeconomic headwinds. Analyst Jim Lim Khai Xhiang says in a note that despite expecting strong earnings in 2H 2022 due to easing supply-chain disruption and large backlog orders, car sales will likely soften next year as borrowing and living costs rise in tandem with automobile prices. RHB names Bermaz Auto and Sime Darby as its preferred stocks in the sector, rating both of them a buy with target prices of MYR2.35 and MYR2.75, respectively. Bermaz Auto shares are 1.0% lower at MYR1.91 and Sime Darby shares are 0.9% lower at MYR2.19. (yingxian.wong@wsj.com)

0137 GMT - Copper prices slide amid fears about China's economic growth. The risk of renewed lockdowns in the country due to rising Covid-19 cases are denting the demand outlook for base metals, ANZ analysts say in a research report. Copper prices could struggle amid higher inventories of the metal, the bank adds. The International Copper Study Group estimates that copper could reach a surplus of 155,000 metric tons in 2023, from this year's deficit of 325,000 tons. The three-month forward LME copper contract falls 0.3% to $7,364.50 a ton. (yiwei.wong@wsj.com)

0044 GMT - Gold edges lower in Asia morning trade, after futures of the metal declined overnight amid dollar strength and as Treasury yields rose further above the 4% mark. With Treasury yields "making a strong move higher, non-interest bearing gold is in trouble," Oanda senior market analyst Edward Moya says in a note. It "could get even uglier" for the precious metal if it breaks below the $1,620 level, Moya adds. "The psychological $1,600 level might not prove too strong of a support level for gold, which could lead to a plunge to the $1,550 level." Spot gold drops 0.1% to $1,628.05.(clarence.leong@wsj.com)

0042 GMT - Evolution Mining's new fiscal year is off to a slow start, with 1Q gold output 9% below consensus expectations, RBC Capital Markets analyst Alex Barkley says in a note. Meanwhile, all-in sustaining costs were 11% above market expectations, says Barkley. Still, production should improve through FY 2023 and Evolution has stuck with its full-year guidance, he says. "Higher grades at Red Lake and ongoing Cowal and Red Lake project delivery are some positives in the quarter," adds Barkley. Evolution's shares are down 8.5% at A$1.84 in Sydney. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0030 GMT - The U.S. mining industry says that the Biden Administration's new American Battery Materials Initiative, which aims to improve the supply of minerals used for power, electricity and electric vehicles, is a positive step for domestic miners. National Mining Association CEO Rich Nolan says the initiative "continues the steady drumbeat from this administration that we need to do more and do better when it comes to securing our mineral supply chains." A commitment to faster permitting for projects within the U.S. "could meaningfully unlock our domestic mining potential," following a decades-long focus on sourcing minerals abroad, says Nolan. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

2256 GMT--Falling prices for aluminum, surplus inventories and soaring costs for electricity are triggering widespread losses in the aluminum industry. Alcoa says 20% to 30% of aluminum-smelting capacity in China is under water, and 46% to 55% of the production in the rest of the world is losing money. After Alcoa curtailed production at its San Ciprian, Spain, smelter last year until 2024 amid rising energy costs, the company reports it has secured 75% of the energy needed to restart production from wind farms. The company is now waiting for permits to be issued for the construction of the wind projects. ( robert.tita@wsj.com ; @bob_tita)

2203 GMT - Alcoa Chief Executive Roy Harvey says the US and its allies should block imports of aluminum from Russia in response to the country's invasion of Ukraine. Harvey says the war in Ukraine disrupted aluminum prices and drove up energy prices, causing some aluminum production to be idled in the US and Europe. "Russian companies continue to produce and sell their metal while North American and European producers are curtailing smelters," Harvey tells analysts. "It doesn't make any sense." Alcoa voluntarily stopped doing business with its Russian customers this spring. (robert.tita@wsj.com; @bob_tita)

2105 GMT - The IPC stock index closes down 0.2% at 46217 points, with miner Grupo Mexico shares down 3.2% and Cemex off 2.7%. America Movil shares rose 3.4% after the company reported higher revenue and profit in 3Q, and auto parts maker Nemak shares rose 5.1%. "Nemak posted better than expected quarterly results, with Ebitda that came in 12% above consensus," Citi Research analyst Andres Cardona says in a note. The peso weakens to 20.10 against the US dollar from 20.03 yesterday. (anthony.harrup@wsj.com)

1905 GMT - Natural gas prices in the US tumble again, finishing the day 4.9% lower at $5.4620/mmBtu, which marks the fourth straight day of declines and the lowest closing price since June 30. Tomorrow's weekly EIA storage report at 10:30 am ET may see yet another triple-digit, above-normal injection as strong output and weak seasonal demand loosen up inventories that had been tight all year long. A WSJ survey is forecasting a 102B cubic feet injection versus the average 73 bcf injection. The front-month contract is nearly 20% lower since October began, although it's still 46% higher year-to-date. (dan.molinski@wsj.com)

1904 GMT - Live cattle futures closed up 1.1% to $1.5135 per pound. For the continuous contract, it's the highest level since April 2015 driven by expectations of a squeeze in beef availability in the coming months. "The expectation is that cattle are going to get harder to buy and futures are starting to reflect that concern," Steve Wagner of CHS Hedging tells the WSJ. Wagner adds that some buying may be taking place ahead of Friday's Cattle on Feed report, with traders expected to 'sell the fact' once the report is released on Friday at 3pm eastern time. Lean hog futures finished up 1% to 87.375 per pound. (kirk.maltais@wsj.com; @kirkmaltais)

(END) Dow Jones Newswires

October 20, 2022 00:15 ET (04:15 GMT)