Global Oil Inventories Forecast to Rise on Softer Demand, Higher OPEC+ Supply — Market Talk

A weaker U.S. dollar and the strong possibility of a rate cut being announced tomorrow by the Federal Reserve is giving CBOT grain futures a lift. "I think it is optimism about a rate cut and a lower dollar," says Phil Flynn of Price Futures Group. He adds that weather in U.S. growing areas creating yield reductions is also a factor, as is the possibility of a trade deal with China as hinted at by President Trump on his Truth Social account this week. CBOT corn is leading the charge, up 1.4%, while wheat rises 1.3% and soybeans climb 0.5%. Meanwhile, the U.S. dollar index is down 0.6%. (kirk.maltais@wsj.com)

By Cristina Gallardo and Sarah Sloat

Shares in Thyssenkrupp jumped after the company said it received a non-binding offer from Jindal Steel for its European steel operations, a business the German industrial group has long sought to sell.

"The executive board of Thyssenkrupp will examine the offer closely, particularly with regard to economic sustainability, the continuation of the green transformation, and employment at our steel locations," the company said.

Thyssenkrupp's shares traded 4.7% higher at 11.47 euros in the European afternoon, after rising nearly 8% after the offer was disclosed.

The offer comes as Thyssenkrupp attempts to reduce complexity, boost competitiveness and increase profitability. Earlier this year, it announced a cost-cutting drive, involving thousands of job cuts and reduced salaries for its steel workers.

Thyssenkrupp has tried unsuccessfully a number of times to sell its steel business. An attempt to sell the business to Britain-based Liberty Steel Group fell through in 2021 after the parties failed to reach an agreement. A prior deal with India's Tata Steel was blocked by European Union competition authorities.

In May last year, entrepreneur Daniel Kretinsky acquired a 20% stake in the steel business through his holding company EPCG, and there have been talks about EPCG potentially raising its stake.

Narendra Misra, director of European operations at Jindal, said Tuesday that the Indian company aims to transform Thyssenkrupp's steel business into Europe's largest integrated low-emissions steelmaker.

Jindal has put forward a plan to decarbonize the business and make its production of steel in Germany competitive, the company said.

If acquired by Jindal, Thyssenkrupp Steel will benefit from the additional supply of Jindal's new plant in Oman, which is scheduled to start operations in 2027, as well as iron ore from its mines in Cameroon, the Indian company said.

By integrating into Jindal's supply chain, TK Steel will stay competitive across all economic cycles, Jindal added.

The Indian company also plans to invest in new electric arc furnace capacity in Germany, increasing TK Steel's production of low-emission steel, Jindal said.

Write to Cristina Gallardo at cristina.gallardo@wsj.com and Sarah Sloat at sarah.sloat@wsj.com

Soybean futures climbed toward $10.5 per bushel, supported by a weaker US dollar and renewed optimism over US–China trade talks.

The dollar index slipped to a two-month low, boosting the competitiveness of US grains abroad, as markets anticipate the Federal Reserve will begin its rate-cut cycle on Wednesday with a 25bps reduction.

Trade sentiment was further lifted by reports that US President Donald Trump and Chinese President Xi Jinping are expected to hold a call on Friday.

However, China—the world’s largest soybean importer—has yet to make significant purchases of US 2025/26 crops amid lingering trade frictions.

On the supply side, the USDA reported that 63% of the US soybean crop was rated “good” or “excellent,” down slightly from 64% the previous week but still above the five-year average.

The agency also noted that 5% of the crop has been harvested.

Live cattle futures on the CME picked up where they left off in morning trade, with the most-active contract turning down 0.4%. While cattle has had positive sessions for three out of the past four trading days, before that it finished lower for six straight sessions — and today may be a resumption of that downtrend. The reason, says DTN in a note, could be because of demand destruction stemming from high prices for beef on grocery store shelves. Lean hog futures are up 0.6% in morning trade. (kirk.maltais@wsj.com)

The Baltic Exchange's dry bulk sea freight index, which tracks rates for vessels transporting dry commodities, advanced for a third session on Tuesday, adding 1 point, or 0.1%, to a fresh high since July 28 at 2,154 points.

The capesize index, which typically transports 150,000-ton cargoes such as iron ore and coal, rose about 1.1% to a new high since August 18 at 3,189 points.

On the other hand, the panamax index, which usually carries 60,000-70,000 tons of coal or grain, eased for a second session, falling 1.8% to a one-week low of 1,968 points; and the supramax index shed 2 points to 1,491 points.

The absence of China from buying U.S. soybean exports continues to be a hot-button issue for the U.S. agricultural market. "Every week that goes by without Chinese business amounts to more volume lost," says John Stewart & Associates in a note. China's continued absence will likely result in reductions to expectations for overall U.S. soybean export sales, the firm adds--which would be a pressure point for prices. The USDA reduced its projections for 2025/26 soybean export sales in its September WASDE, cutting it by 20 million bushels to 1.69 billion bushels. CBOT soybeans are up 0.6% in early trading, while corn rises 0.9% and wheat is up 1%. (kirk.maltais@wsj.com)