MARKET MOVEMENTS:
–Brent crude oil is up 0.3% to $66.90 a barrel
–European benchmark gas is up 1.9% to 34.13 euros a megawatt-hour
–Gold futures are up 1.5% to $3,354.90 a troy ounce
–LME three-month copper futures are up 0.9% at $9,967 a metric ton
TOP STORY:
Google Signs Deal to Buy Fusion Energy From Bill Gates-Backed Nuclear Startup
Google signed one of the world's first commercial deals for fusion energy, in an agreement with nuclear startup Commonwealth Fusion Systems.
It is a bet on future technology. Nuclear fusion--the process that fuels the stars--has never been used for commercial energy production. CFS, which is backed by Bill Gates's technology fund Breakthrough Energy Ventures, is aiming to start producing commercial fusion energy in the 2030s.
OTHER STORIES:
OPEC+ Likely to Agree to Another Major Output Boost With Crude Below $70
OPEC+, the world's largest group of oil producers, is expected to approve another super-sized output hike on Sunday in a move that would fast-track plans to unwind production cuts a full year ahead of the original schedule.
Key members of the alliance have already agreed to a 411,000-barrel-a-day increase--three times the initially planned volume--for May, June and July. Another boost in August would mark the fourth consecutive month of large increases, leaving the market well-supplied through year-end.
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The Renewable-Energy Sector's Relative Winners and Losers in the Megabill
The Senate's latest version of the megabill caught the renewable-energy sector off guard with a new tax on wind and solar projects that, together with the quick end of lucrative tax credits, would devastate the industry.
Clean-energy companies say the U.S. risks a slowdown in power delivery during the global artificial-intelligence race by ending the tax credits that were part of former President Joe Biden's landmark Inflation Reduction Act. The U.S. is also poised to cede advances in technologies from solar panels to batteries and electric vehicles to China.
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Canada Loads First Ever LNG Cargo to Asia
Canada has shipped its inaugural cargo of liquefied natural gas, kicking off operations at its first large-scale LNG export facility.
The Asia-bound cargo was loaded from the LNG Canada export facility in Kitimat, British Columbia.
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Drax Appoints Shell Exec Frank Lemmink as CFO
Drax said it appointed Shell executive Frank Lemmink as its new chief financial officer and that he will join the board on Sept. 1.
The London-listed power-generation company said Tuesday that Lemmink will succeed CFO Andy Skelton, who will step down from the board on that date. Skelton will continue to support the company in the succession process until Dec. 4.
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U.K. Energy Watchdog Gives Nod to $33 Billion Five-Year Grid Investment Plan
U.K. energy regulator Ofgem provisionally approved an $33.24 billion five-year investment program in the country's gas and electricity grid, saying it expects network charges will need to increase to cover the costs.
Ofgem issued its draft determinations Tuesday for the five-year period from April 1, 2026 to March 31, 2031 and set out its investment and price control framework.
MARKET TALKS:
Crop Conditions Set the Pace for CBOT Futures -- Market Talk
0940 ET - U.S. crop conditions were helped by supportive and well-timed weather across the Corn Belt. In its latest Crop Progress report, the USDA says 73% of corn is in good or excellent condition. That's up one point from the prior week. Soybean conditions were left unchanged at 66% good or excellent. Winter wheat condition slipped one point to 48% good or excellent, the USDA says. This is buoying wheat futures in early trading. Weather is expected to stay consistent this week, with hot and dry conditions across the Corn Belt, says Michael Cordonnier of Soybean and Corn Advisor Inc. Corn falls 1.9%, soybeans shed 1.2%, and wheat rises 0.9%. (kirk.maltais@wsj.com)
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Corn and Soybeans Lower Following USDA Reports -- Market Talk
0935 ET - USDA reports of higher grain stocks and planted acreage largely unchanged from earlier estimates are pressuring CBOT corn and soybeans in early trading. Corn acreage was reported at 95.2 million acres, while soybean acres were seen at 83.4 million. "The figures differed only marginally from the planting intentions published at the end of March," says Commerzbank in a note. That along with stocks seen as higher than projected by analysts has corn down 1.8%, and soybeans off 1%. Wheat is up 0.9%. (kirk.maltais@wsj.com)
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Platinum Prices Extend Rally on China Demand, Supply Worries -- Market Talk
1448 GMT - Platinum prices rise to an 11-year high on Chinese jewelry demand and supply concerns. Spot prices are up 1.8% to $1,366.70 a troy ounce, and sit up 50% in the year-to-date. Platinum's rally reflects growing market tightness, with the World Platinum Investment Council estimating a 966,000 ounce shortfall in 2025. This would be the third consecutive annual deficit. Above ground platinum stocks are estimated to have fallen to cover just three months of demand, Saxo Bank's Ole Hansen says in a note. At the same time, interest in platinum for jewelry and investment purposes has surged in China, as gold's own historically high prices damp interest in the "expensive" yellow metal, Hansen writes. The path is potentially paved for further platinum gains in the second half of 2025, he adds. (joseph.hoppe@wsj.com)
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Gold Futures Gain on U.S. Dollar Weakness, Market Uncertainty -- Market Talk
1358 GMT - Gold futures rise 1.6% to $3,362.10 a troy ounce on a weaker U.S. dollar and sustained safe-haven demand. The precious metal is finding support as increasing market concerns lead the U.S. dollar lower, Exness analysts say in a note. President Trump's tax and spending bill is expected to widen the U.S. fiscal deficit by $3.3 trillion over the next decade, analysts say. Global trade uncertainty also persists, with Trump threatening new tariffs on Japan and other countries, Exness says. Market expectations for the Federal Reserve easing monetary policy also support gold, analysts add. Lower interest rates typically boost noninterest bearing bullion's attractiveness. (joseph.hoppe@wsj.com)
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Gold Futures Rise on Persistent Safe-Haven Demand, Weaker Dollar -- Market Talk
1125 GMT - Gold futures rise on a weaker dollar and persistent safe-haven demand. Futures are up 1.7% at $3,362.50 a troy ounce. Gold has steadily climbed for the second consecutive session despite the market shifting into risk-on mode, Trade Nation's David Morrison says in a note. There appears to still be appetite for some safe-haven assets like gold, as geopolitical and macroeconomic concerns continue to provide potential catalysts, Morrison writes. The weaker dollar is also boosting gold's haven appeal. That said, investors should still act cautiously as the dollar looks heavily oversold, Morrison says. Should the dollar mount a rally, it could make it more expensive to buy dollar-denominated commodities and provide an alternative safe-haven asset to gold. (joseph.hoppe@wsj.com)
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Palm Oil Prices Fall on Stronger Malaysian Ringgit -- Market Talk
1028 GMT - Palm oil prices ended lower on a stronger Malaysian ringgit, says David Ng, a trader at Kuala Lumpur-based Iceberg X. A stronger Malaysian ringgit may curb export demand and the production pace that is gaining strength, Ng adds.Ng sees support at 3,900 ringgit a ton and resistance at 4,080 ringgit a ton. The Bursa Malaysia Derivatives contract for September delivery is down 16 ringgit at 3,970 ringgit a ton.(jiahui.huang@wsj.com; @ivy_jiahuihuang)
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Cattle Down as Select States See Improved Pasture -- Market Talk
1016 ET - Pasture conditions in certain states showed improvement over the past week, says the USDA in its Crop Progress report late Monday. "Pasture and range conditions in drought-stricken Nebraska saw an increase of 10 points in the good-to-excellent category, with 37% of the state here," says DTN. "Improvements were seen in the other Plains states of Kansas, South Dakota and North Dakota, with the percentage of pastures in the good-to-excellent category at 66%, 42% and 61%, respectively." Cattle futures don't appear to be getting any lift from the USDA's announcement late yesterday that it would gradually reopen borders with Mexico as New World Screwworm fears ease. CME cattle futures fall 1.2%, while lean hogs are flat. (kirk.maltais@wsj.com)
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Copper Gains on Positive Chinese Data, Tariff Positioning -- Market Talk
1010 GMT - Base metal prices rise, with LME three-month copper up 0.6% at $9,937.50 a metric ton and LME three-month aluminum up 0.4% at $2,608.50 a ton. Copper gains after Chinese Purchasing Manager Index data surprised to the upside, alongside hopes for tariff clarity and a tight concentrate market, SP Angel analysts say in a note. Asia is likely to increase copper demand, with electric vehicles in China using twice as much copper as expected given their increasing size, analysts write. Copper has also been driven higher on the back of positioning ahead of a potential U.S. import tariff, analysts say. Metal has flowed to the U.S. from Asia to take advantage of higher premiums. At the same time, concentrate stocks have been hit by supply shocks and a mass Chinese smelter capacity expansion, SP Angel adds. (joseph.hoppe@wsj.com)
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U.S. Natural Gas Futures Extend Losses -- Market Talk
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July 01, 2025 11:33 ET (15:33 GMT)
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