Data from the Vietnam Commodity Exchange (MXV) shows that the global raw material commodity market fluctuated yesterday. Agricultural trading was closed as U.S. exchanges were closed for Martin Luther King Jr. Day. On the price board of other commodity groups, many items closed the day with slight fluctuations around the reference level. The MXV-Index stood at 2,107 points.

Oil Prices Fell Slightly Amid Conflicting Fundamentals

According to MXV, oil prices fluctuated during the first trading day of the week on January 15 and ended the session unchanged from the reference level amid conflicting fundamentals. On one hand, the limited impact of the conflict in the Middle East on crude oil production prompted profit-taking by investors. On the other hand, freezing weather in North Dakota, USA, disrupted oil production activities in the region, leading to a decline in output.

Market liquidity was relatively thin. The closing prices will be calculated on the morning of January 17 due to the early market closure for the holiday. As of 2:30 a.m. on January 16, WTI crude oil prices fell by 0.3% to $72.5 per barrel. Brent crude oil prices decreased by 0.2% to $78.15 per barrel.

Many oil tankers avoided the Red Sea and altered their routes after the U.S. and U.K. launched military operations targeting Houthi positions in Yemen. Ship tracking data from LSEG and Kpler showed that at least six more oil tankers left the southern Red Sea on Monday, with Torm Innovation, Proteus Harvonne, and Alfios I switching to the longer route around the Cape of Good Hope in Africa.

Despite this, the market did not see the escalating conflict as posing a danger to crude oil production and flows from the Middle East, which accounts for about one-third of the world's oil production. This prompted profit-taking by bullish speculators, putting pressure on oil prices.

However, the downward trend in prices narrowed as U.S. supply tightened. According to the latest estimates from the North Dakota Pipeline Authority, North Dakota's oil production fell by 400,000 to 425,000 barrels per day due to cold weather and related operational issues. Before the decline in crude oil production, North Dakota was producing about 1.2 to 1.3 million barrels of oil per day, equivalent to more than 1% of global demand.

Robusta Coffee Prices Reach Highest Level in 16 Years Amid Supply Shortage Concerns

Robusta coffee prices reached the highest level in 16 years, rising 1.65% by the end of the trading session on January 15. Tensions in the Red Sea continued to raise concerns about contract defaults and supply shortages in the short term.

Global coffee traders worried that tensions in the Red Sea would increase shipping costs for coffee from Asian countries to the U.S. and Europe, as well as extend delivery times. This could prompt farmers in major producing countries like Vietnam to limit coffee sales. Consequently, previously traded orders might not be fulfilled on time, and the global market would face a short-term supply shortage.

In the domestic market, as recorded this morning (January 16), the price of Robusta coffee beans in the Central Highlands and Southern provinces increased by 600 VND/kg. Accordingly, domestic coffee prices were purchased around 70,600 - 71,300 VND/kg.

White sugar prices rose by 1.29% in yesterday's session, supported by crude oil prices. As crude oil prices strengthened, Brazilian sugar mills prioritized sugarcane for ethanol extraction, a biofuel that can replace oil. Therefore, input materials for sugar production could be limited as the current sugarcane crushing season is nearing its end.

After seven consecutive sessions of gains, crude palm oil prices adjusted down by nearly 1% in yesterday's session. Concerns about weakening demand in major palm oil importing countries like China and India overshadowed the less optimistic supply data from the two leading producers, Indonesia and Malaysia.

Source: MXV