The most-traded iron ore contract on China’s Dalian Commodity Exchange (DCE) dropped 0.57% to 780 yuan ($115.27) a metric ton, as of 0309 GMT.

The benchmark July iron ore on the Singapore Exchange slid 1.22% to its lowest since April 15 at $103.95 a ton, as of 0259 GMT.

The steel market entered a traditionally slack demand season earlier than usual this year, hit by rains and the earlier onset of high summer temperatures, the state-backed steel association said in a WeChat post late on Tuesday.

Outdoor construction activities are typically constrained by rains and high temperature, dampening appetite for steel products.

“Downstream steel consumption has taken a hit with buying appetite receding, keeping steel and feedstock prices under pressure,” said Xin Ge, deputy director at consultancy Lange Steel.

The mismatch between supply and demand may intensify without timely adjustment on supply, so steelmakers need to prioritize controlling production and lowering inventory, the Chinese steel association said.

“Steel margins have been squeezed by rising coal prices after the mine accident, denting buying interest for feedstocks,” said Lange’s Ge.

Iron ore prices strengthened on Tuesday as state iron ore buyer China Mineral Resources Group (CMRG) told some domestic steelmakers not to engage in discussions with Australia’s Fortescue about a new iron ore product, triggering speculation of a potential purchase ban.

But traders and analysts downplayed the potential near-term impact on prices.

Other steelmaking ingredients traded mixed with coking coal down 0.26% and coke up 0.15%.

Coking coal prices have risen by 16% as the deadly mine accident in late May fanned supply concerns. Steel benchmarks on the Shanghai Futures Exchange were mostly weaker.

Rebar edged down 0.06%, hot-rolled coil dipped 0.15%, wire rod slid 0.41% and stainless steel added 0.2%.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 73 ringgit, or 1.61%, to 4,608 ringgit ($1,159) a metric ton in early trade.

The benchmark three-month copper on the London Metal Exchange dropped 0.43% to $13,980.50 a metric ton as of 0245 GMT. It touched a more-than two-week high and surged past the $14,000 mark at $14,056 on Tuesday.

The most-active copper contract on the Shanghai Futures Exchange gained 0.78% to 106,820 yuan ($15,785.90) a ton.

That is still lower than the three-week high level of 107,420 yuan set in evening trade.

Traders said prices continued to find support from uncertainty over US copper tariffs as a June 30 deadline approaches.

By that date, the US commerce secretary is due to provide President Donald Trump with an update on domestic copper markets, including refined copper and refining capacity.

Trump signed a proclamation this week amending tariffs on some steel, aluminium and copper imports, though traders said the latest changes had little direct impact on refined copper.

The move nevertheless kept tariff risk in focus for a market already distorted by expectations of possible US action. Signs of tighter nearby supply on the LME also supported sentiment, as a widening premium of Comex copper against that on the LME raised dislocation risks.

The LME cash-to-three-month copper discount narrowed to just around $4 a ton on June 3 from $77 on May 19, while cancelled warrants rose, suggesting more metal was being prepared for withdrawal.

Fresh hostilities in the Middle East remained a concern in the background as diplomacy between the US and Iran yielded little progress and the Strait of Hormuz remained shut.

A stronger-than-expected US job openings reading also weighed on metals, supporting the dollar and reducing expectations of near-term US rate cuts. Elsewhere on the LME, aluminium nudged 0.05% lower, zinc dipped 0.19%, lead dropped 0.32%, nickel lost 0.64% and tin was down 0.20%.

Among other metals on SHFE, aluminium added 0.22%, zinc gained 1.27%, lead rose 0.24%, nickel lost 0.98% and tin climbed 1.39%.

The most-active corn contract on the Chicago Board of Trade (CBOT) fell 0.2% to $4.39-1/2 a bushel by 0308 GMT.

Soybeans gained 0.2% to $11.68 a bushel, while wheat lost 0.6% to $5.99-1/2 a bushel.

Crop-friendly weather in the US Midwest has pressured the market.

Corn was 93% planted as of Sunday, and 67% was rated in good-to-excellent condition, slightly below trade expectations but still very favourable to large yields.

Wheat has been under pressure from the upcoming Northern Hemisphere harvests.

The winter crop harvest has kicked off but demand for US exports remained limited amid abundant global supplies.

Russian wheat export prices held firm last week, supported by a strong rouble and continued reluctance by farmers to sell, although analysts expect a drop in export shipments in June.

In Australia, rainfall over large stretches of parched farmland in the last few weeks has triggered a flurry of late wheat sowing, but growers are wary of a dry El Nino weather pattern in the coming months that could hit yields, farmers and analysts said.

Meanwhile, heavy and persistent rains in China’s wheat belt have affected crops, but a dramatic increase in imports is unlikely because the weather was expected and damages are manageable at the moment, analysts said.

Chinese authorities have issued a warning over the risk of winter wheat lodging in key wheat-producing regions from late Tuesday through Thursday.

In Ukraine, a major crop exporter, the combined grain and oilseed harvest is likely to rise to 83.6 million metric tons from 80 million tons in 2025 and its exportable surplus could total 50.8 million tons, Ukrainian grain traders union UGA said on Monday.

Benchmark three-month copper on the London Metal Exchange was up 1percent at USD13,970 a metric ton in official open outcry activity. It earlier touched USD13,994, its highest since May 14.

Investors are awaiting a recommendation from the US Department of Commerce by the end of the month on possible tariffs on imports of refined copper. The prospect of such a duty helped spur prices last year but ultimately did not materialise.

Panmure Liberum analyst Tom Price said investors he spoke to in the US last week were considering buying US copper equities for the next few weeks. “Because it worked last year, maybe it’ll work this year,” he said. Still, the elevated copper price in no way reflects fundamentals, Price added.

The White House on Monday amended tariffs on some copper, aluminium and iron imports, but the order did not resolve the broader question about refined copper that has driven regional dislocation in the market.

COMEX copper’s premium over LME price widened, encouraging shipments to US warehouses. Aluminium, meanwhile, was up 1percent at USD3,752 a ton, after touching USD3,787.50, its highest since March 2022, as LME inventories dwindled to 335,450 tons, the lowest in almost four years.

The cash LME aluminium contract traded at a USD116.50 per ton premium over the three-month forward, the highest level in at least 17 years, underscoring the shortage of immediately available metal. “Aluminium, I think, is genuinely a tight market,” Price said, pointing to slowing Chinese exports and the loss of supply from the war-hit Middle East.

“But copper and tin just look like speculative playthings at the moment,” he said. Tin added 1.9percent to USD57,725, within striking distance of its all-time peak of USD59,040 set in January.

Zinc firmed 1.3percent to USD3,626, nickel gained 0.4percent to USD19,325 and lead was up 1.2percent at USD2,029.50 after hitting its highest since January 29.

Spot gold was up 0.9percent to USD4,522.28 per ounce as of 0848 a.m. EDT (1248 GMT) after falling as much as 2percent on Monday. US gold futures gained 1percent to USD4,552.00.

Gold market trajectory “depends on the direction of oil prices, bond yields, and the US dollar - all of that, in turn, is tied to the Middle East situation,” said Fawad Razaqzada, market analyst at Forex.com.

“For me to turn bullish on gold again, we need to see at least some renewed upside momentum suggesting that buyers are coming back. At the moment, however, the market seems directionless, with participants largely waiting for cues, particularly from the Middle East.”

On the geopolitical front, Iran is reviewing a proposed agreement with the United States to halt the war between the two countries, Iran’s Mehr news reported, after Trump said talks to reach a deal were continuing.

Oil prices fell after the previous session’s sharp gains. Since the start of the conflict, gold has come under pressure as a surge in energy prices has stoked inflation worries and expectations of elevated interest rates.

Although gold is typically viewed as a hedge against inflation, it tends to lose its attractiveness as a non-yielding asset when interest rates are high.

Data due this week include US job openings later in the day, the ADP employment report on Wednesday, and Friday’s employment report. Markets will scan the data for cues on the Federal Reserve’s policy path. Commerzbank expects gold at USD4,800 per troy ounce by the end of this year, down from its previous forecast of USD5,000.

It maintained its forecast of USD5,200 per for the end of 2027 and noted that structural factors supporting gold remain entirely intact. “In addition to the lowered gold price forecast, weaker industrial demand for silver also points to a slightly lower silver price,” Commerzbank added.

Spot silver rose 2.1percent to USD76.37 per ounce. Platinum gained 2.2percent to USD1,966.65 and palladium rose 1.7percent to USD1,385.37.

The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.6percent at USD4.41-1/2 a bushel, as of 0225 GMT. Soybeans fell 0.2percent to USD11.78-1/4 a bushel and wheat lost 0.6percent to USD6.05 a bushel. Grain markets have tracked swings in crude oil prices during the three-month US-Israeli conflict with Iran, in part because some crops are used to produce biofuels.

However, favourable weather, weak US demand, and expectations of strong harvests in South America have put increasing pressure on corn and soybean prices. Crop-friendly weather in the US Midwest has pressured the market despite the US Department of Agriculture’s report on Monday that corn and soybean crops were in slightly worse shape than last year.

The USDA said 67percent of corn was in good-to-excellent condition, as of Sunday, down from 69percent a year earlier. Soybeans were rated 66percent good-to-excellent, compared with 67percent a year earlier, the agency said.

Farmers had finished planting 93percent of the corn crop and 87percent of soybeans, as of Sunday, ahead of the five-year averages of 92percent for corn and 80percent for soybeans, the agency said. In Ukraine, a major crop exporter, the combined grain and oilseed harvest is likely to rise to 83.6 million metric tons from 80 million tons in 2025 and its exportable surplus could total 50.8 million tons, Ukrainian grain traders union UGA said on Monday.

Wheat export prices held firm last week in key producer Russia, supported by a strong rouble and farmers’ reluctance to sell, although analysts expect export shipments to decline in June. Farmers in Brazil’s centre-south region harvested 2.4percent of their 2026 second corn crop, as of last Thursday, agribusiness consultancy AgRural said on Monday, up from 0.9percent in the previous week and above the 1.3percent reported a year earlier.

Lower than usual imports of palm oil by the world’s biggest importer of vegetable oils could swell stocks in top producers Indonesia and Malaysia and weigh on benchmark Malaysian palm oil futures.

Palm oil imports rose to 551,000 metric tons in May, from 513,403 tons in April, dealer estimates showed.

Soyoil imports surged 38percent month-on-month in May to 497,000 tons, the highest in five months, while sunflower oil shipments fell 32.3percent to 294,000 tons.

India’s overall imports of edible oil rose 2.6percent from April to 1.3 million tons in May, as soyoil purchases jumped, estimates showed. The figures exclude duty-free shipments arriving via land from Nepal, the dealers said.

India’s monthly palm oil imports averaged about 632,000 tonnes in the marketing year ended October 2025, according to the Solvent Extractors’ Association of India (SEA), which is due to publish May import data by mid-June.

India’s imports of palm oil have stayed below average as cooking gas shortages curbed demand from restaurants and other bulk consumers, said Aashish Acharya, vice president of Patanjali Foods Ltd, a leading importer of palm oil. These restaurants serve popular deep-fried snacks such as samosas and chole bhature, which features chickpeas.

The world’s second-largest importer of cooking gas, India is grappling with its worst gas crisis in decades, as the government cuts supplies to industry and raises commercial cylinder prices to shield households from shortages.

Shipment is sought between September 1 and September 30 if sourced from the US Pacific Northwest coast, between August 12 and September 10 if sourced from the US Gulf, August 7 and September 5 if from South America, or August 22 and September 20 if from South Africa. The tender continues brisk corn purchasing by Korean importers in the past week.

Traders said some importers had delayed purchases in the hope that commodity prices would fall if a US-Iran peace deal was reached, though that remains elusive.

The Osaka Exchange (OSE) rubber contract for November delivery was up 9.6 yen, or 2.29percent, at 429 yen (USD2.69) per kg, its highest since May 14.

The rubber contract on the Shanghai Futures Exchange (SHFE) for June delivery rose 205 yuan, or 1.15percent, to 18,005 yuan (USD2,662.99) per metric ton. The contract has also reached its highest since May 14. The most active June butadiene rubber contract on the SHFE gained 45 yuan, or 0.31percent, to 14,555 yuan per metric ton.

On Tuesday, Japanese Finance Minister Satsuki Katayama said the authorities stood ready to respond in the currency market as needed, as the yen, which last traded at 159.67 per dollar, eyed the 160 level, widely seen by markets as a trigger for intervention.

A stronger currency makes yen-denominated assets less affordable to overseas buyers. Weather disruptions in the world’s top two rubber producers are expected to further crimp supplies, supporting prices. * Top rubber producer Thailand’s meteorological agency warned of very heavy isolated rains in the south of the country, which may cause flash floods from June 2-7.

Meanwhile, Indonesia’s meteorological agency is predicting early dryness and less-than-expected rainfall for June. Chinese EV giant BYD, the world’s largest EV maker, snapped its longest streak of declining sales in May, according to Reuters calculations based on a stock filing on Monday.

Vehicle sales globally grew 0.3percent from a year earlier to 383,453 units last month following eight months of sales contraction, while production rose for the first time since July 2025, climbing 8.8percent year-on-year in May.

The front-month rubber contract on Singapore Exchange’s SICOM platform for July delivery last traded at 234.2 US cents per kg, up 2.1percent as of 0700 GMT.

Imports of silver in the form of grains, powder, other forms and where content is 99.9% silver are restricted, according to a government order issued on Tuesday, and importers would need to secure a valid import authorization from the Directorate General of Foreign Trade (DGFT).

Last month, India had placed imports of silver bars with 99.9% purity and all other semi-manufactured forms of silver under the restricted category.

It had also raised import tariffs on gold and silver to 15% from 6% as part of efforts to reduce overseas purchases of the metals and ease pressure on foreign exchange reserves caused by higher oil prices.

The South Asian country spent a record $12 billion on silver imports in the financial year ended March 2026, compared with $4.8 billion a year earlier.

In April, India’s silver imports jumped 157% from a year earlier to $411 million, trade ministry data showed.

“The government has made it harder for the bullion industry to bring in silver. Importers now need approval first, and there is no clear idea if they will get it or how long it will take,” said a Mumbai-based bullion dealer with a private bank.

Silver is used in India for jewellery, coins, bars and industrial applications ranging from solar energy to electronics.

Over the past year, demand has been driven more by investment buying than traditional jewellery and silverware consumption, with inflows into silver ETFs climbing to a record high.

India imports silver mainly from the United Arab Emirates, Britain and China.

Lower than usual imports of palm oil by the world’s biggest importer of vegetable oils could swell stocks in top producers Indonesia and Malaysia and weigh on benchmark Malaysian palm oil futures.

Palm oil imports rose to 551,000 metric tons in May, from 513,403 tons in April, dealer estimates showed.

Soyoil imports surged 38% month-on-month in May to 497,000 tons, the highest in five months, while sunflower oil shipments fell 32.3% to 294,000 tons.

India’s overall imports of edible oil rose 2.6% from April to 1.3 million tons in May, as soyoil purchases jumped, estimates showed.

The figures exclude duty-free shipments arriving via land from Nepal, the dealers said.

India’s monthly palm oil imports averaged about 632,000 tonnes in the marketing year ended October 2025, according to the Solvent Extractors’ Association of India (SEA), which is due to publish May import data by mid-June.

India’s imports of palm oil have stayed below average as cooking gas shortages curbed demand from restaurants and other bulk consumers, said Aashish Acharya, vice president of Patanjali Foods Ltd, a leading importer of palm oil.

These restaurants serve popular deep-fried snacks such as samosas and chole bhature, which features chickpeas.

The world’s second-largest importer of cooking gas, India is grappling with its worst gas crisis in decades, as the government cuts supplies to industry and raises commercial cylinder prices to shield households from shortages.

Soyoil imports jumped in May as the commodity’s premium over palm oil narrowed to about $40 a tonne, boosting its appeal among refiners, said Rajesh Patel, managing partner at trader GGN Research in Rajkot, a city in the western state of Gujarat.

Palm oil will need to trade at a steeper discount to rival soyoil to revive demand, said Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage and consultancy firm.

Similarly, 10-gram gold was sold at Rs408,403 after it increased by Rs3,944, according to rates shared by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).

On Monday, gold price per tola reached Rs471,762 after a decline of Rs4,400 during the day.

The international rate of gold was up by $46 to reach $4,540 per ounce (with a premium of $20).

Meanwhile, the price of silver increased by Rs94 to reach Rs8,153 per tola.

The benchmark three-month copper on the London Metal Exchange was up 0.32% at $13,876.50 a metric ton as of 0258 GMT, reaching $13,924, its highest since May 15.

The most-traded copper contract on the Shanghai Futures Exchange climbed 1.32% to 106,050 yuan ($15,682.77) a ton.

The White House on Monday amended tariffs on some copper, aluminium and iron imports andlowered duties on some agricultural and industrial equipment, though the order did not resolve the broader copper tariff question that has driven regional dislocation in the market.

“Tariff uncertainty is likely to support market sentiment,” analysts at ING Economics said. COMEX copper’s premium over LME widened, continuing to encourage shipment into US warehouses.

Meanwhile, the discount for LME cash copper against three-month also narrowed, indicating tightening near-term supply.

The Middle East remained in focus after Lebanon announced a partial ceasefire between Hezbollah and Israel, though fighting continued in southern Lebanon.

The limited de-escalation has not resolved the broader US-Iran conflict, with Iranian state media saying Tehran is halting indirect peace talks with Washington and a senior Iranian commander threatening to disrupt the Bab el-Mandeb Strait.

The conflict has kept energy risks elevated for metals, while aluminium is more directly exposed as the Gulf accounts for around 9% of global output.

LME aluminium rose 0.91% to $3,750 after touching an over four-year high at $3,775, and Shanghai aluminium rose 0.88% to 24,530 yuan.

Tin also rallied. London tin rose 1.15%, and its Shanghai peer surged 3.45%.

Among other metals on the LME, zinc added 0.21%, lead ticked 0.12% higher, and nickel dipped 0.34%.

Elsewhere on SHFE, zinc rose 0.36%, lead dipped 0.18% and nickel gained 0.54%.

The shipments were valued at $8.22 billion.

The bureau’s data excludes palm kernel oil, oleo chemicals and biodiesel.

GAPKI, Indonesia’s palm oil association, usually releases its own numbers at a later date, covering more products, and thus has different export figures.

The shipments were worth $7.57 billion.

India approves coal gasification plan to weather Mideast war crunch

The bureau’s figures are based on reports from the customs office.

The data may differ from those provided by the Energy and Mineral Resources Ministry, which are based on reports from mining companies.

In the May-July period, Indonesia’s rice output is expected to reach 7.92 million tons, down 1.16% from the same period last year.

Indonesia expects a longer and more severe dry season this year due to El Nino, which started in April and will likely peak around August.

The first shipment of Pakistani mangoes is scheduled to leave for international markets today, but industry stakeholders fear one of the most difficult export seasons in recent years.

According to Waheed Ahmed, Patron-in-Chief of the Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA), exporters are grappling with unprecedented logistical and financial hurdles as regional instability disrupts access to key Gulf markets, the largest destination for Pakistani mangoes.

“In view of the extraordinary challenges facing the trade, the export target has been reduced to 80,000 tons from last year’s 110,000 tons,” Ahmed said.

The decline is expected to significantly impact export earnings. Pakistan generated around USD 110 million from mango exports last season, but revenues this year are projected to fall to between USD 75 million and USD 80 million.

The Gulf region, which absorbs nearly 35 percent of Pakistan’s mango exports, is expected to be among the hardest-hit markets due to the fallout from escalating tensions involving Iran and the wider Middle East. The crisis has triggered a dramatic surge in transportation costs, squeezing exporters already struggling with higher production expenses.

Sea freight charges to Gulf destinations have jumped from USD 1,200- USD 1,400 per container last season to as much as USD 6,000- USD 7,000 this year. Air freight rates have also more than doubled, climbing from 70-90 cents per kilogram to nearly USD 2 per kilogram.

The burden is further compounded by rising domestic fuel prices, which have increased transportation costs from orchards to packing facilities and ports.

Despite the difficult environment, PFVA remains determined to protect Pakistan’s presence in both traditional and emerging export markets.

The association also expressed concern over the closure of trade routes through Afghanistan, warning that exports to Afghanistan and Central Asian states could suffer. However, Ahmed said exports to Iran may increase if both countries improve coordination on quarantine procedures and harmonise regulatory requirements.

He praised the Ministry of Commerce and the Ministry of National Food Security for resisting pressure from vested interests seeking an earlier export season. By maintaining the June 1 start date, the government has ensured that Pakistani mangoes will reach international buyers fully matured, preserving the fruit’s renowned taste, aroma and quality.

Beyond trade-related challenges, Ahmed highlighted deeper structural issues facing the mango industry. Climate change, erratic weather patterns and the weak disease resistance of existing orchards have steadily eroded production over the past five years.

This year’s mango crop is expected to be around 20 percent lower than the country’s average annual production of 1.9 million tons, raising concerns about the long-term sustainability of the sector.

Calling for urgent action, Ahmed urged the government to invest in research and development, improve orchard management practices, and support quality enhancement initiatives. He stressed that Pakistan has the potential to substantially increase mango exports if fruit quality is upgraded and growers receive better technical guidance.

To achieve the revised export target of 80,000 tons, robust support from the government and concerned officials is critical. With vessels delayed and shipping services severely disrupted due to the regional crisis, timely intervention in freight facilitation, port clearance and diplomatic engagement with Gulf buyers is urgently needed.

Copyright Business Recorder, 2026

Spot gold was down 1.9percent at USD4,451.65 per ounce as of 10:01 a.m. EDT (1401 GMT) after hitting a two-week high on Friday.

US gold futures fell 2.5percent to USD4,479.20. The US dollar firmed, making metals priced in the currency more expensive for holders of other currencies. “Expectations for interest rates to remain higher for longer are likely to keep gold under pressure, unless bond yields stop rising and rates begin to stabilise or trend lower,” said Jim Wyckoff, a market analyst at American Gold Exchange.

Iran said it had attacked a US air base following weekend US strikes on Iranian military targets. Iran’s Tasnim news agency said that Iran’s negotiating team said it was stopping exchanging messages with the United States through mediators.

Oil extended gains, adding to inflation fears linked to the Iran conflict, which could lead central banks to raise interest rates to curb rising price pressures.

Traders have factored in a roughly a 56percent chance of at least one US rate hike by the year-end, according to CME Group’s FedWatch tool. Although gold is often regarded as an inflation hedge, its attractiveness tends to fade in a high-interest-rate environment because it does not generate yield.

Market participants will turn their attention to a series of US jobs data releases due this week, along with remarks from Federal Reserve officials.

“Once the geopolitical situation stabilises and the energy shock begins to fade, we expect investors to refocus on the structural themes that have underpinned the bull market in gold over recent years,” Saxo Bank analyst Ole Hansen said.

He added that central banks are expected to remain net buyers over the coming year. Spot silver fell 1.7percent to USD73.96 per ounce, platinum lost 0.4percent to USD1,908.91 and palladium fell 0.8percent to USD1,343.04.

“Palladium is moving towards balance as supply constraints are offset by weakening autos demand,” Morgan Stanley said in a note dated Friday.

Benchmark aluminium on the London Metal Exchange traded 0.5percent higher at USD3,685 a metric ton in official rings. Earlier, it touched USD3,707.50 to match a level hit on May 26 for its highest point since March 2022.

The Middle East houses 9percent of global smelting capacity for aluminium. The closure of the Strait of Hormuz has restricted aluminium exports from the region and limited imports of the raw materials needed to smelt the metal used to manufacture cars, aeroplanes, beer cans and building materials.

Analysts expect a large aluminium market deficit this year, with some floating numbers above 2 million tons. “Aluminium remains the standout story,” Britannia Global Markets said in a note. “The extreme backwardation highlights the severity of the squeeze.” Backwardation refers to the premium for nearby LME aluminium contracts against those along the maturity curve.

The premium for the cash aluminium contract over a three-month forward surged to 19-year highs above USD100 a ton on Friday. Elsewhere, copper prices are ticking up as markets price in tight markets outside the US, which has over the last year sucked in vast amounts of copper due to expectations for tariffs on imports.

The US is expected to decide by late June whether to impose tariffs on copper metal imports.

Total copper stocks in warehouses registered with Comex HG-STX-COMEX at 640,181 short tons or 580,762 metric tons are up more than 550percent since US President Donald Trump in February last year ordered an investigation of copper import tariffs. Expectations of weak mine supply growth have also helped reinforce elevated copper prices.

Supporting industrial metals overall was expanding manufacturing activity in top consumer China for the sixth consecutive month. Copper was up 1.5percent at USD13,840 a ton, zinc gained 1percent to USD3,576, lead firmed 0.2 percent to USD2,021, tin advanced 2percent to USD56,590 and nickel was little changed at USD19,275.

SUGAR

Raw sugar rose 3.4percent to 14.54 cents per lb at 1451 GMT, having hit its lowest since late April last Thursday. Oil prices headed sharply higher after Iran and the US traded strikes and Israel ordered troops to move further into Lebanon.

Higher energy prices are bullish for sugar as they often tempt cane mills to produce more ethanol fuel and less sugar. Elsewhere, India has forecast an El Niño-weakened monsoon in 2026 that will bring the lowest rainfall in 11 years.

“If the forecast proves true, it would make it the weakest monsoon since 2015. The trade is watching the monsoon development for its potential effects on Indian cane production,” said broker ADMIS. White sugar rose 2.3 percent to USD448.40 a metric ton.

COFFEE

Arabica coffee fell 1.8 percent to USD2.6085 per lb, having closed down 2.5percent last week to mark five consecutive weeks of losses. * An expected bumper harvest in top grower Brazil is keeping coffee under pressure, though the harvest pace has been slow so far. Also, certified arabica stocks continue to fall, hitting the lowest since February at little over 435,000 bags. Robusta coffee fell1.1percent to USD3,437 a ton.

COCOA

London cocoa rose 0.3percent to 2,964 pounds a ton, having gained 4percent last week. New York cocoa dipped 0.2percent to USD3,916 a ton. Cocoa arrivals at ports in top grower Ivory Coast were up 2.2percent from the season start to May 31 versus the same period a year ago, exporters estimated.

Rainfall was mainly below average last week in most of Ivory Coast’s cocoa-growing regions but it was sufficient to boost the size and quality of the March-to-August mid-crop, farmers said.

Ecuador’s cocoa bean exports hit 32,175 metric tons in April, according to cocoa exporters association Anecacao.

The Osaka Exchange (OSE) rubber contract for October delivery was down 1.18percent at 417.1 yen (USD2.62) per kg, as of 0244 GMT. The rubber contract on the Shanghai Futures Exchange (SHFE) for September delivery rose 0.79percent to 17,945 yuan (USD2,651.53) per metric ton. The most-active June butadiene rubber contract on the SHFE rose 2.8percent to 14,845 yuan per ton.

Oil prices rose more than 2percent in early trading after Israel ordered troops to move further into Lebanon in the battle with the Iranian-backed Hezbollah militant group, despite a ceasefire announced more than six weeks ago.

Natural rubber often tracks oil prices as it competes for market share with synthetic rubber, which is made from crude oil. “The rubber market has been demonstrating support and range-bound trading patterns,” a Singapore-based trader said.

Market participants remain cautious, closely monitoring developments in the Middle East conflict and seasonal supply trends, comparing expected peak-season output with actual arrivals to assess the market’s future direction, he said.

Japan’s Nikkei rose a further 1percent, having risen almost 5percent last week to all-time highs. The yen weakened 0.08percent to 159.41 per dollar, making yen-denominated assets more affordable for overseas buyers.

Benchmark aluminium on the London Metal Exchange was up 0.6% at $3,690 a metric ton at 0916 GMT. Earlier, it hit $3,707.50 to match a level hit on May 26 for its highest point since March 2022.

The Middle East houses 9% of global smelting capacity for aluminium. The closure of the Strait of Hormuz has restricted aluminium exports from the region and limited imports of the raw materials needed to smelt the metal used to manufacture cars, aeroplanes, beer cans and building materials.

Analysts expect a large aluminium market deficit this year, with some floating numbers above 2 million tons.

“Aluminium remains the standout story,” Britannia Global Markets said in a note. “The extreme backwardation highlights the severity of the squeeze.”

Copper slips after strong month as lack of news on Iran deal curbs upswing

Backwardation refers to the premium for nearby LME aluminium contracts against those along the maturity curve.

The premium for the cash aluminium contract over a three-month forward surged to 19-year highs above $100 a ton on Friday.

Elsewhere, copper prices are ticking up as markets price in tight markets outside the U.S., which has over the last year sucked in vast amounts of copper due to expectations for tariffs on imports.

The U.S. is expected to decide by late June whether to impose tariffs on copper metal imports.

Total copper stocks in warehouses registered with Comex HG-STX-COMEX at 640,181 short tons or 580,762 metric tons are up more than 550% since U.S. President Donald Trump in February last year ordered an investigation of copper import tariffs.

Expectations of weak mine supply growth have also helped reinforce elevated copper prices.

Supporting industrial metals overall was expanding manufacturing activity in top consumer China for the sixth consecutive month.

Copper was up 1.1% at $13,792 a ton, zinc gained 0.9% to $3,571, lead firmed 0.1% to $2,018, tin advanced 2% to $56,500 and nickel climbed

1.1% to $19,280.

Provisional Indian government data reviewed by Reuters showed China shipped in around 232,000 metric tons of finished steel in April and emerged as the top exporter of such steel to the South Asian nation.

That is despite India, the world’s second-biggest crude steel producer, imposing import tariffs in December on some grades for a period of three years that had managed to slow imports from China.

Imports of finished steel products into India from China were primarily hot-rolled coils, followed by stainless steel products, the data showed.

The benchmark three-month copper on the London Metal Exchange rose 0.28% to $13,674.50 a metric ton as of 0310 GMT.

The most-active copper contract on the Shanghai Futures Exchange slipped 0.07% to 104,770 yuan ($15,481.80) a ton.

The Shanghai contract has been traded within a narrow range, gaining as much as 0.18% before nudging lower.

Concerns over global supply tightness continued to underpin copper prices, as Goldman Sachs on Monday raised its copper price forecast for the end of 2026 to $13,735 a ton from $12,465.

Thebank citeda tighter-than-expected market outside the US, with weak mine production growth globally.

Comex copper stocks rose more than 9% to 640,181 short tons (580,762 tons) through Friday, from April 14 when they first started to rise after a more-than-a-month long plateau, indicating a regional dislocation of copper is set to re-emerge between the US and the rest of the world.

Goldman sees US copper inventories increasing by around 900,000 tons this year, compared with an earlier estimate of 550,000 tons.

Its base case, however, sees no US copper import tariffs in 2026.

Meanwhile, investors continued to watch developmentsaround Iran peace negotiations, with positivity connected to President Donald Trump saying he would soon decide on a ceasefire deal quickly offset by Israeli Prime Minister Benjamin Netanyahu’s order for a deeper incursion into Lebanon to hit the Iranian-backed militant group Hezbollah.

China’s slowing manufacturing activity also capped copper’s gains. The official manufacturing Purchasing Managers’ Index (PMI) stood at 50, the mark just separating growth from contraction in May, while a private survey showed a sixth straight month of expansion, though at a slower pace.

Among other LME metals, aluminium added 0.23%, zinc ticked 0.10% higher, lead was little changed, down only 0.02%, nickel dipped 0.25% and tin gained 0.36%.

Elsewhere on SHFE, aluminium dipped 0.12%, zinc lost 0.86%, lead was also little changed, up only 0.03%, nickel dropped 0.71% and tin rose 0.48%.

Wheat gained ground, although pressure from Northern Hemisphere harvest limited the upside in prices.

“We have higher oil today, which is directly supporting the grain and oilseed markets,” said one trader in Singapore.

“We will see more grains and oilseeds being diverted to make biofuels if energy supplies continue to remain tight.”

The most-active soybean contract on the Chicago Board of Trade (CBOT) rose 0.2% to $11.89 a bushel by 0206 GMT and corn added 0.1% to $4.47-1/4 a bushel, after both closed lower in the last session. Wheat rose 0.3% to $6.12 a bushel.

Oil prices rose more than 2% after Israel ordered troops to move further into Lebanon in the battle with the Iranian-backed Hezbollah militant group, despite a ceasefire announced more than six weeks ago.

The stepped-up fighting, coming just after the US hosted Israeli-Lebanon peace talks in Washington on Friday, dimmed expectations that the US and Iran could soon announce an extension to their ceasefire agreement.

Soybeans and corn often track crude oil prices, as these are commonly used as feedstocks for biofuels. Since the start of the Iran war at the end of February, countries have stepped up efforts to channel more agricultural commodities into biofuel production as they seek to offset fuel shortages and reduce dependence on increasingly expensive petroleum supplies.

Crop-friendly weather in the US Midwest pushed prices lower last week as market players awaited the US Department of Agriculture’s weekly crop progress report on Monday.

Wheat faced pressure from the upcoming Northern Hemisphere harvests.

While the US crop has suffered irreparable damage from drought, many other countries are on track for good crops.

Agriculture consultancy Sovecon raised on Wednesday its forecast for Russia’s 2026 wheat crop to 90.3 million metric tons from 89.7 million tons seen earlier, citing favourable “moisture reserves”.

However, India forecast an El Nino-weakened monsoon in 2026 that will bring the lowest rainfall in 11 years, fuelling concerns over crops, food prices and growth in the world’s fifth-largest economy battling inflationary pressures from the Iran war.

A weekly-market survey carried out by Business Recorder here on Sunday revealed some daily use food items remain high and others fall slightly in the retail market.

Price of tomato remained high in the retail market as it is being sold at 100 per kilogramme against the price of Rs60 per kilogramme in the preceding week. Similarly, onion was being sold at Rs100/kg against the price Rs70 per kg.

Likewise, price of ginger touched a new peak in the previous week as compared to preceding week, as it was available at Rs600-700 and Rs800 per kilogramme. Garlic was available at Rs300-400/kg in the retail market, the survey added.

Green chili was being sold at Rs120/kg against the price of 80 per kg in the previous week as compared to preceding week.

Amid the hot and humid weather, the price of lemon has increased exorbitantly in the retail market. One kilogramme lemon was available at Rs400 against the price of Rs100 per kilogramme in the retail market, the survey said.

Peas was being sold at Rs200 per kg, capsicum at Rs150 per kilogramme, lady finger at Rs100 per kilogramme, Arvi at Rs 200 per kilogramme, turnip at Rs150 per kilogramme, Eggplant (bringle) at Rs 100 per kilogramme, Zucchini (tori) at Rs 120-150 per kilogramme, Tenda Rs 100 per kilogramme, cabbage at Rs 120 per kilogramme, red-colored potatoes available at Rs 70 per kilogramme while white-coloured potatoes are sold at Rs 50 per kilogramme in the retail market, the survey said.

Prices of cooking oil and ghee also remained stable in the open market.

No change in prices of LPG was witnessed, as the gas is Rs460 per kilo in the retail market.

A one kilogramme of sugar dropped as it was available at Rs150 against the price of Rs 160 per kilogramme, the survey said.

A one kilogramme live chicken was being sold at Rs365-370 in the previous week as compared to Rs380 per kilogramme in the preceding week, the survey said. Butchers continuously defy the official rates, even not displaying price-list issued by local administration at their outlets and squeezing the consumers with both hands.

According to the survey, cow meat without bone is being sold at Rs1350/kg and cow meat with bone at Rs1500/kg against the official rates of Rs900 per kilogramme announced by local authorities concerned, the survey said. Mutton beef was being sold from Rs 2800 to Rs 3000 per kg in the open market, the survey added.

Similarly, flour prices were still unchanged as a 20-kg bag was being sold at Rs2700 against the price of 2900-3000. However, the price of an 80-kg bag remained unchanged as available at Rs 12,500 and Rs13000 per sac in the wholesale market, the survey said.

The survey said good quality rice (sela) was available at Rs 360 per kilogramme, while low quality rice was available at Rs 300-320 per kilogramme, while toota rice was available at Rs 200-220 per kilogramme.

Prices of pulses remained unchanged in the retail market, according to the survey. The survey said dal mash was available at Rs 480, dal masoor at Rs 320 per kilogramme, dal chilka (black) at Rs 320 per kilogramme, dal chilka (green) at Rs 260 per kilogramme, moonge at Rs 400 per kilogramme, dhoti dal at Rs 400 per kilogramme, dal Channa at Rs 450 per kilogramme, red bean at Rs 440 per kilogramme, Gram flour (baisen) at Rs 420 per kilogramme against Rs 280 per kilogramme, big-size white Channa at Rs 380 per kilogramme, small-size white channa from Rs 360 per kilogramme.

Copyright Business Recorder, 2026

Prices fell to a two-month low of USD4,365.76 on Thursday, but closed higher. US gold futures for August delivery rose 0.4percent to USD4,550.00. Four sources familiar with the matter said the proposed U.S-Iran deal would extend their truce by 60 days and lift restrictions on shipping through the Strait of Hormuz. US President Donald Trump has yet to approve the agreement, and Iranian state media said it has not been finalised.

Gold bounced from a key technical support level, while optimism over the ceasefire extension pushed oil prices and the dollar lower - both supportive for bullion, said Phillip Streible, chief market strategist at Blue Line Futures.

The dollar index was on track for a weekly decline, making dollar-denominated metals cheaper for overseas buyers, while oil prices were also set for a weekly fall.

Still, the “higher-for-longer” interest-rate theme remains intact, Streible said, as disruptions to shipping and energy infrastructure could keep oil prices elevated and the Federal Reserve cautious.

Data showed US inflation rose at its fastest pace in three years in April, driven by higher energy prices linked to the Iran war, reinforcing expectations the Fed will keep rates unchanged well into next year.

Higher interest rates increase the opportunity cost of holding non-yielding gold. Spot gold was down more than 2percent for the month. Elsewhere, gold demand in India remained subdued due to higher prices and import duties, while premiums in top consumer China narrowed amid cautious sentiment.

Spot silver fell 0.2percent to USD75.51 per ounce and was headed for monthly gain, while platinum steadied at USD1,923.55. Palladium gained 0.6percent to USD1,375.57, but was down more than 9percent for the month.

The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 15 ringgit, or 0.33percent, to 4,552 ringgit (USD1,148.62) a metric ton by the midday break.

The futures have booked 1.47percent gains so far this week. “Today’s trade is expected to be externally driven, mainly by Dalian and soyoil, coupled with an upwards bias due to the upcoming long holidays,” said a Kuala Lumpur-based trader.

The futures will be closed on June 1-2, and trading will resume on Wednesday, June 3. Dalian’s most-active soyoil contract rose 0.68percent, while its palm oil contract added 0.24percent. Soyoil prices on the Chicago Board of Trade were down 0.18percent.

Palm oil tracks the price movements of rival edible oils, as it competes for a share of the global vegetable oils market.

The Indonesian government met with palm oil farmer groups on Friday to address concerns about a steep decline in the prices of fresh fruit bunches, which farmers say was caused by uncertainties about a new plan to funnel all palm oil exports through a state agency.

Benchmark three-month copper on the London Metal Exchange slipped 0.7percent to USD13,608 a metric ton by 1425 GMT after gaining 1.3percent in the previous session. LME copper rebounded on Thursday on the back of news that the US and Iran reached an agreement to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz.

But President Donald Trump has yet to approve it and Iranian state media said it had not been finalized. “Copper is drifting lower today, it seems like we’ve got some profit-taking. We’ve certainly had a small uptrend for the last two weeks, but it’s stalling a bit,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

LME copper is on track to add about 5 percent this month, the second straight month of gains, largely on hopes for a deal to end the Iran war and signs of firmer demand.

Copper was also supported by the continued flow of metal to the US as traders took advantage of a slight premium of US futures over those in London. US Comex copper futures shed 0.8percent to USD6.37 a lb, bringing the premium of Comex over LME copper to 3.3percent or USD451 a ton. “If you take copper out of the market into the US then that helps to tighten the overall global market, so it’s difficult not to paint a picture of underpinned and supported prices going forward,” Hansen said.

LME aluminium rose 0.2percent to USD3,666 a ton, and the premium of the LME cash contract over the three-month futures climbed to USD97 a ton, the highest since February 2007, highlighting worries about potential shortages the Iran war is causing in the Gulf, which accounts for about 9percent of global output.

Among other metals, LME zinc gave up 0.3percent to USD3,540 a ton and nickel dipped 0.4percent to USD19,030 while lead rose 0.4percent to USD2,025 and tin was little changed at USD55,100.