California Wants to Throw the Book at State Farm Over Wildfire Claims -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is down 3.2% to $110.74 a barrel.

--European benchmark gas is down 2.6% to 46.91 euros a megawatt-hour.

--Copper futures are up 1.3% to $13,114 a metric ton.

--Gold futures are up 1.3% at $4,591.90 a troy ounce.

TOP STORY:

California Wants to Throw the Book at State Farm Over Wildfire Claims

California officials took legal action Monday against State Farm, accusing the insurer of unlawfully delaying, denying and underpaying home-insurance claims from survivors of last year's Los Angeles wildfires.

The state is seeking millions of dollars in damages, the highest penalty sought this century following a wildfire disaster, the California department of insurance said Monday. Its legal filing also seeks the power to suspend State Farm's license to operate in the state for up to a year.

OTHER STORIES:

Canada Antitrust Watchdog Seeks to Kibosh Keyera Deal for Plains' Canada Gas Business

OTTAWA--Canada's antitrust watchdog said Tuesday it is seeking to quash Keyera's proposed deal for Plains All American Pipeline's Canadian natural-gas business.

The Competition Bureau said the planned $3.7 billion transaction would reduce competition at a crucial natural-gas liquids processing hub in Fort Saskatchewan, Alberta. The bureau said Canadian producers rely on that hub to bring product to market.

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Ballard Power Systems Narrows 1Q Loss on Rail, Stationary Strength

Ballard Power Systems' loss narrowed in the first quarter as stronger contributions from its rail and stationary segments offset weaker results in its bus business.

The hydrogen fuel-cell technology company posted a net loss from continuing operations of $11.4 million, or 4 cents a share, narrowing from a loss of $21 million, or 7 cents a share, in the comparable quarter a year ago.

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Marathon Petroleum Swings to 1Q Profit on Higher Fuel Prices

Marathon Petroleum swung to a hefty first-quarter profit as the oil refiner's profit margins rose alongside fuel prices.

The Findlay, Ohio, refiner and pipeline operator swung to a profit of $511 million, or $1.73 a share, from a loss of $74 million, or 24 cents a share, a year earlier.

MARKET TALKS:

U.S. Farmer Optimism Weakens -- Market Talk

1109 ET - Farmers grew a bit less hopeful about their finances in April, says the latest Ag Economy Barometer from Purdue University and the CME Group. The barometer now reads 121, down from 127 in March. A reading of 100 is considered baseline, meaning that farmers do remain optimistic as a whole about their financial prospects this year. But higher costs for fertilizer and fuel, along with tighter availability for these inputs, are pressuring that hopefulness. High costs have been a worry for farmers, although the recent upswing in grain futures has eased some pressure. Roughly two-thirds of respondents still say they expect net income for their farms to be reduced in 2026. CBOT grain futures are lower today. ([e-mail])

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Grain Traders Lock In High Prices Ahead of New Uncertainty -- Market Talk

1055 ET - Profit-taking appears to be driving CBOT grain futures today, in part because traders see risk for surprises to upend solid year-to-date gains that grains have posted so far. "We've seen producers being active, playing defense against prices at these levels ahead of next week's WASDE report and scheduled meeting between Trump and Xi," says Oliver Sloup of Blue Line Futures. That meeting has already been rescheduled once before, and traders are positioning themselves in the event of a surprise announcement from President Trump. Next week's WASDE could potentially carry surprises regarding planting acres or grain supply. CBOT corn falls 0.8%, while soybeans are down 0.1% and wheat slides 1%. ([e-mail])

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Cattle Higher While Crude Oil Turns Lower -- Market Talk

1015 ET - Live cattle futures on the CME are 0.7% higher, seemingly shaking off the government's announcement that it was investigating meatpacking operations on antitrust grounds. Lower crude prices seem to be bolstering cattle futures. Traders have been watching this relationship closely under the premise that higher energy costs mean less money for consumers to spend on expensive proteins like beef, potentially shifting demand over to less-costly options like pork or chicken. This macro-level concern was a source of pressure for cattle futures Monday, says the Hightower Report in a note. Lean hogs are up 0.4%. ([e-mail])

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USDA Says It's Addressing Lower Farmer Response Rates -- Market Talk

1000 ET - The USDA is attempting to address the lower response rate of farmers when it comes to government surveys. The agency tells WSJ that through measures such as "technology modernization" and "engaging stakeholders through structured feedback," the USDA hopes to build its projections in documents like the WASDE report. "It's important that we hear from America as we continue to meet our nation's evolving needs," says the USDA. The agency has come under fire following a recent New York Times story on low farmer participation in crop surveys. Fewer farmer responses means a greater chance for outliers to move averages disproportionately. ([e-mail])

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Ongoing Strait Blockage Seen Inflating Grain Futures -- Market Talk

0943 ET - The snarled traffic at the Strait of Hormuz has been supportive for CBOT grain futures, but some analysts anticipate a quick reversal should a resolution to the conflict soon come. "Grain valuations are far above 'fair value' as measured by U.S. and world stocks-to-use ratios, which grain analysts have used for decades," says AgResource in a note. This is why what happens with the Strait is the biggest influencer of CBOT values, the firm says. The war has helped grain futures jump year-to-date, but they're taking a breath this morning--CBOT corn falls 0.7%, soybeans are down 0.4%, and wheat is off 1%. ([e-mail])

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Brazilian Crop Estimates Trend Higher -- Market Talk

0927 ET - The outlook for Brazil output keeps being revised higher by analysts. In its latest projections, StoneX Brazil says it now sees soybean production in Brazil at 181.6 million metric tons, up from 179.7 million tons previously forecast. The firm attributes the change to "small increases in both plantings and yield," says Matt Zeller of StoneX in a note. Total corn production was also raised, to 137 million tons from 135.7 million tons previously. How large a crop Brazil manages to harvest this year will dictate how tough competition will be for U.S. offerings on the world export market. CBOT corn is down 0.7%, soybeans fall 0.4%, and wheat is off 1%. ([e-mail])

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USDA Says Planting On Par or Ahead of Prior Year -- Market Talk

0923 ET - The planting pace in the U.S. doesn't appear to be lagging despite drought in the western plains and excessive rainfall in the east. The USDA reports that 38% of the U.S. corn crop has been planted as of May 3, the same amount planted at this point last year and four points ahead of the five-year average. Additionally, 33% of the U.S. soybean crop has been planted, which is five points ahead of this time last year--and 10 points in front of the five-year average. The dismal condition of the winter wheat crop has improved slightly, up one point to 31% good-or-excellent condition. Corn falls 0.7%, soybeans are down 0.4%, and wheat is off 0.9%. ([e-mail])

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Gold Rises As Traders Assess Middle East Developments -- Market Talk

1507 GMT - Gold prices rise as traders monitor a fragile U.S.-Iran cease-fire and the impact of higher energy prices on inflation and interest rates. In afternoon trading, New York gold futures gain 1.2% to $4,589.60 a troy ounce. "Unless we see meaningful progress towards stability in the Gulf, elevated oil prices are likely to keep short-end U.S. yields, and by extension, the dollar underpinned," says Fawad Razaqzada from Forex.com. "That combination is not good for the near-term gold forecast." Investors now await ADP employment data on Wednesday and non-farm payrolls on Friday for more clues on the U.S. monetary policy outlook. ([e-mail])

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Oil Falls as U.S. Says Cease-Fire Holds

1430 GMT - Oil prices extend losses after the U.S. signaled a fragile cease-fire with Iran is holding despite recent attacks. Brent crude for July delivery falls 2.6% to $111.45 a barrel, while WTI futures for June are down 3.6% to $102.62 a barrel. Iran's military actions don't rise to the level of restarting the war, Gen. Dan Caine, chairman of the Joint Chiefs of Staff, says. Defense Secretary Pete Hegseth adds that the U.S. still hopes Iran will agree to a deal. However, there has been no progress toward reopening the Strait of Hormuz, and uncertainty over the next steps in peace talks is raising fears of a deepening energy supply shock, limiting further price declines. ([e-mail])

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Cattle Higher While Crude Oil Turns Lower -- Market Talk

1015 ET - Live cattle futures on the CME are 0.7% higher, seemingly shaking off the government's announcement that it was investigating meatpacking operations on antitrust grounds. Lower crude prices seem to be bolstering cattle futures. Traders have been watching this relationship closely under the premise that higher energy costs mean less money for consumers to spend on expensive proteins like beef, potentially shifting demand over to less-costly options like pork or chicken. This macro-level concern was a source of pressure for cattle futures Monday, says the Hightower Report in a note. Lean hogs are up 0.4%. ([e-mail])

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U.S. Natural Gas Futures Ease in Early Trade -- Market Talk

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05-05-26 1151ET