Starbucks Sales Jump as Coffee Customers Return-- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 0.5% at $66.93 a barrel.

--European benchmark gas is down 3.1% to 37.50 euros a megawatt-hour.

--Gold futures are up 3.8% to $5,275.50 a troy ounce.

--LME three-month copper futures are up 0.8% at $13,134.50 a metric ton.

TOP STORY:

Starbucks Sales Jump as Coffee Customers Return

Starbucks said its turnaround efforts are bringing more customers to its cafes.

The world's largest coffee chain on Wednesday reported U.S. same-store sales increased 4% for the three months ended Dec. 28, returning to growth for the first time since late 2023. Global same-store sales also increased 4%, beating analysts' expectations.

For its first quarter, Starbucks reported earnings adjusted for one-time items of 56 cents a share, below the 59-cent estimate from analysts polled by FactSet. Increased costs due to tariffs and workforce investments caused its profit to contract, the company said.

OTHER STORIES:

GE Vernova Lifts Outlook as Profit Jumps

GE Vernova raised its outlook for the coming year as it posted higher profit and revenue in the fourth quarter, boosted by continued momentum across its power and electrification businesses.

The energy company, formed from the breakup of General Electric, on Wednesday said it now expects revenue of $44 billion to $45 billion in 2026, up from a prior outlook of $41 billion to $42 billion.

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Aluminum Stocks Jump in Hong Kong as Metal Hits Multiyear High

Aluminum stocks jumped in Hong Kong as the metal's prices hit a multiyear high, bolstered by a weaker dollar.

Shares of China Hongqiao Group ended 7.3% higher on Wednesday, after rising as much as 7.7%. Aluminum Corp. of China climbed 13%, and Nanshan Aluminium International increased 8.6%.

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SSAB Revenue Falls on Weak Steel Market

SSAB said revenue fell in 2025, citing a weak steel market, particularly in Europe.

The Swedish steelmaker posted 2025 revenue of 96.22 billion kronor ($10.97 billion) compared with 103.42 billion kronor in 2024.

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Fresnillo Cuts Silver, Gold Production Guidance After Output Falls

Fresnillo cut its production guidance for the year ahead after posting a decline in silver and gold output for 2025.

The Mexico-focused silver and gold miner said Wednesday that changes to its Fresnillo mine are expected to drag on ore processing and overall ore grade, while a higher proportion of ore will be extracted from areas with narrower veins.

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ADM to Pay $40 Million to Settle SEC Accounting Fraud Claims

Archer Daniels Midland agreed to pay $40 million to settle regulatory claims that it defrauded investors by artificially boosting profits at its nutrition business, capping off a scandal that led to the departure of several executives and prompted a huge stock drop when it was disclosed.

The case focuses on a period in 2021 and 2022 when ADM's then-chief financial officer, Vikram Luthar, directed accounting adjustments that effectively transferred profits from other ADM segments to the nutrition business, which executives had touted as the company's "engine for future growth," the Securities and Exchange Commission said.

MARKET TALKS:

Deutsche Bank Says Gold Could Reach $6,000 This Year -- Market Talk

1227 GMT - Deutsche Bank says gold prices could climb to $6,000 a troy ounce this year in a weak U.S. dollar environment. "Gold's continued rise reflects investment motives which may be persistent: higher reserve allocations, and investors raising allocations to non-dollar and real assets," analysts at the bank say. In afternoon trading, gold futures in New York climb 3.4% to $5,254.70 an ounce after hitting $5,306 earlier in the session. Meanwhile, the U.S. dollar index is flat at 96.20 after sliding to a nearly four-year low, with President Trump saying he wasn't concerned about the currency's recent drop. A weaker dollar makes precious metals cheaper for buyers holding other currencies. ([e-mail])

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European Gas Price Falls After Multiday Rally -- Market Talk

1041 GMT - European natural-gas prices fall back below 40 euros a megawatt hour after a multiday rally, despite concerns over the impact of a massive winter storm on U.S. production and exports. The benchmark Dutch TTF contract slides 3.6% to 37.35 euros a megawatt hour in early trading. "Estimated pipeline deliveries to export terminals have declined to about 10bncf/d as a winter storm disrupts local supplies," ANZ analysts say. "If supplies fail to recover, Asian importers may be forced to secure more cargoes in the spot market." Still, the storm isn't expected to have a significant impact on imports, as disruptions are likely to be short-lived and global LNG supply is set to ramp up sharply this year, market watchers say. ([e-mail])

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Palm Oil Rises; Indonesia Policy Risk Key to Outlook -- Market Talk

1025 GMT - Palm oil ended higher, with the Bursa Malaysia Derivatives contract for April delivery rising 12 ringgit to 4,272 ringgit a ton. Indonesia policy risk dominates the palm-oil outlook, Daiwa analysts say in a research note. The deferral of Indonesia's B50 biodiesel mandate has removed a key demand catalyst for 2026, but supply disruptions from land seizures could lend short-term support to crude palm oil prices, it says. Daiwa keeps a neutral rating on the palm-oil sector. ([e-mail])

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Silver Climbs Above $115 as U.S. Dollar Slides -- Market Talk

0903 GMT - Silver prices extend their rally following a steep decline in the U.S. dollar, with investors shying away from sovereign bonds and currencies in favor of hard assets. Futures in New York climb 7.5% to $113.92 a troy ounce after hitting $116.17 earlier in the session. "Gold and silver extended their strong rally with the debasement trade back in sharp focus," analysts at Saxo Bank say. "Adding to the narrative, BlackRock's Rick Rieder--who favors aggressive rate cuts--is now seen as a leading candidate for the next Fed chair." Lower interest rates typically benefit precious metals by reducing the opportunity cost of holding a non-yielding asset relative to interest-bearing bonds. ([e-mail])

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Oil Extends Gains on Iran Risks, U.S. Winter Storm Disruptions

0855 GMT - Oil prices gain further in early trading after surging about 3% in the previous session as traders monitor geopolitical risks and the impact of a massive winter storm on U.S. output. Brent crude and WTI are both up 0.2% to $66.71 a barrel and $61.71 a barrel, with a falling U.S. dollar making commodities cheaper for buyers holding other currencies. "President Trump has dispatched naval assets to the Middle East. This has raised the prospect that he will follow through on his threat to attack Iran's senior leadership in response to a violent crackdown on nationwide protests," analysts at ANZ say. Meanwhile, winter storm Fern disrupted refineries on the Gulf Coast and elsewhere, further supporting prices. ([e-mail])

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Silver Likely to Outperform Further -- Market Talk

0530 GMT - Silver is likely to outperform further after rallying through $100/oz, Citi Research's Maximillian J. Layton says in a research report. Bullish factors such as heightened geopolitical risks and renewed concerns over Fed independence are expected to remain intact in the very near term, the global head of Commodities Research says. These factors will probably support strong investment or speculation demand, and will likely lead to further physical tightening in major ex-U.S. trading hubs, Layton says. Citi raises its silver-price forecast for up to three months to $150/oz from $100/oz previously. Spot silver is 3.3% higher at $115.75/oz. ([e-mail])

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Iron Ore Lower on High Inventories -- Market Talk

0254 GMT - Iron ore is lower in early Asian trading. Stockpiles of the ore at Chinese ports surged to their highest levels since 2022 last week, reflecting softer demand and robust supply, according to ANZ analysts in a research note. That said, renewed supply-side issues may limit downside, they say. Vale, the Brazilian iron ore producer, has halted operations at two mines after water mixed with sediment overflowed over the weekend, the analysts point out. The most-traded iron-ore contract on the Dalian Commodity Exchange is down 0.6% at CNY784.0 a ton. ([e-mail])

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Copper Rises, But Signs of Softening Demand May Weigh -- Market Talk

0133 GMT - Copper rises in the early Asian trade, with the three-month LME copper contract 0.6% higher at $13,085.00 a ton. However, signs of weakening demand could weigh. Activity in the Chinese market is slowing ahead of the Lunar New Year holiday next month, when inventories typically build, ANZ Research says in a note. The strong gains in prices for most base metals have seen downstream users also pull back from purchases, it notes. This trend has been exacerbated by officials raising the margin requirement for copper to 11% from 10% on the Shanghai Futures Exchange, ANZ adds. ([e-mail])

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(END) Dow Jones Newswires

01-28-26 0822ET