Zinc Hits 51-week High

Malaysian palm oil futures rose to around MYR 4,140 per tonne, reversing losses from the previous two sessions, supported by strength in Dalian and Chicago vegetable oils.

The market is on track for a second consecutive weekly increase, up roughly 0.7%, driven by expectations of renewed Indian palm oil buying after refiners reportedly cancelled about 70,000 tons of crude soyoil scheduled for delivery between December and January.

Rising global prices and a weaker rupee made imported soyoil less competitive, prompting Indian buyers to favor palm oil and supporting demand.

Seasonal demand expectations ahead of the Lunar New Year and Ramadan 2026 further underpinned the market.

Gains, however, were capped by projections of higher Malaysian palm oil inventories, potentially reaching a 6-1/2-year high by November-end, alongside lower Indonesian export taxes for December and weak shipments, with Intertek reporting a 19.7% mom drop in November exports.

Zinc increased to 3108.00 USD/T, the highest since November 2025.

Over the past 4 weeks, Zinc gained 1.67%, and in the last 12 months, it increased 1%.

The strategy of Rio Tinto's new CEO "is evolutionary, not revolutionary," according to UBS analysts. In a note, they highlight the miner's plans to improve Ebitda by raising volumes and reducing costs. They say 2026 guidance is broadly as expected and don't expect a material change to earnings forecasts. The analysts reiterate a neutral rating on the stock. "In our opinion, the risk-reward for Rio is improving, with commodity prices supportive and operational performance improving." UBS raises its target to A$138 from A$130. Rio is down 1.5% in Sydney at A$138.45. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

Rio Tinto's first investor briefing under new CEO Simon Trott broadly met market expectations, according to Barclays analysts. They say Trott's plans to make Rio "simpler" and "sharper" could result in 2030 Ebitda being roughly US$5 billion higher than Barclays has forecast, and about US$7 billion higher than market consensus. That said, "market expectations were arguably elevated in the run-in" to the briefing and "softer production guidance for 2026 versus consensus is likely to see near-term consensus estimates decline," the analysts say in a note to clients. Rio is down 1.4% in Sydney at A$138.62. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

Gold is likely to sustain its strong trend-like rally in 2026, UOB's Global Economics & Markets Research team says in a report. "The case for gold as a safe haven to diversify one's portfolio remains strong," UOB writes. There is still strong accumulation of gold inventory on key exchanges globally, while purchases of gold-ETFs remain strong. Expectations of a Fed rate cut next week is also a key near-term positive driver for the precious metal, UOB says. UOB maintains its positive outlook for gold and forecasts prices for 1Q, 2Q, 3Q, 4Q of 2026 at $4,300/oz, $4,400/oz, $4,500/oz and $4,600/oz, respectively. Spot gold is flat at $4,209.10/oz.(amanda.lee@wsj.com)

Indonesia's trade faces significant headwinds in 2026, UOB Kay Hian analyst Suryaputra Wijaksana writes in a research note. That stems from a global slowdown and protectionist policies targeting Indonesia's key exports, such as coal and palm oil. Efforts by India, a major buyer of palm oil, to reduce imports of the commodity, threaten Indonesia. However, these challenges could be partially offset by potential new trade agreements with the U.S. and demand from Europe, the analyst says. A tariff-free trade deal with the U.S. would provide a modest boost to noncommodity exports, he adds. (amanda.lee@wsj.com)