Raw Material Prices Show Mixed Trends
3 thg 5, 2024
Information from the Mercantile Exchange Of VietNam (MXV) indicates that global raw material markets showed mixed trends during the trading session on May 2nd. The selling pressure slightly outweighed the buying, causing the MXV-Index to decrease by 0.23% to 2,249.51 points, marking the fourth consecutive decline.
Buying pressure unexpectedly dominated the agricultural commodities group after several days of stagnation, with 5 out of 7 products seeing price increases. Among these, soybean meal recorded a more than 4% rise, making it one of the strongest price gainers in the market yesterday.
In contrast, the industrial commodities group continued to face pressure, with prices of coffee, cocoa, and cotton falling. Similarly, the metals group also saw many products decline in value due to expectations of a recovery from supply sources. Overall trading value on the exchange increased nearly 10% to over 5,000 billion VND, with the highest capital flow allocated to the agricultural and metals groups.
Soybean prices hit a 3-week high
July soybean futures surged more than 2% in yesterday's session, reaching the highest level in 3 weeks. This was also the strongest increase recorded since November 2023. The buying pressure was significantly boosted right after the session opened, amid ongoing weather threats to the growing season in Brazil.
The Technical and Agricultural Support Company of Emater reported that heavy rains have occurred in the state of Rio Grande do Sul, the second-largest soybean-producing region in Brazil. As of April 25, approximately 34% of the soybean area in the state remains unharvested, and the prolonged rains have caused flooding in key growing areas.
Initially, soybean production in Rio Grande do Sul was expected to reach a record 22.25 million tons this year, compensating for the decreased production in Mato Grosso and Parana due to drought. Adverse weather conditions have diminished these positive expectations, leading to a significant rise in soybean prices.
Soybean meal led the price increase in the agricultural commodities group yesterday, with a rise of nearly 5%. Besides the weather threats to the Brazilian growing season, market rumors about potential strikes by workers in Argentina opposing the government have also supported the surge in soybean meal prices.
Contrary to international trends, the price of soybean meal for June delivery at the Cai Lan port has decreased compared to last week, dropping by about 200 VND/kg to approximately 11,850 VND/kg. The price at the Vung Tau port for the same delivery period is lower, around 11,700 VND/kg.
With supply pressure easing, basic metal prices weakened
In contrast to the dominant upward trend in global agricultural markets, the metals group showed mixed movements, with selling pressure slightly prevailing.
COMEX copper prices extended their decline for the third consecutive session. After reaching a two-year high, copper prices are weakening again as supply risks are gradually alleviated. Specifically, to temper the strong rise in copper prices, Chinese producers are planning to export up to 100,000 tons of refined copper, the highest level in the past 12 years.
In line with this downward trend, LME aluminum and LME nickel prices have also lost over 1% of their value due to improved supply factors. For aluminum, LME warehouse stocks have increased to 88,625 tons, easing concerns about supply disruptions after the US and UK imposed sanctions on Russian aluminum last month, thereby putting pressure on prices.
For nickel, according to an announcement by the Zimbabwean government, one of the world’s major nickel producers, the Trojan nickel mine in Zimbabwe has resumed production after being idle for seven months. The mine now has an annual production capacity of 5,500 tons of concentrated nickel, potentially bolstering supply and putting pressure on nickel prices, which are already under strain from oversupply.
For precious metals, macroeconomic pressures continue to support silver and platinum prices, which have increased for two consecutive sessions. By the end of the day, silver prices rose slightly by 0.3% to $26.82 per ounce, while platinum prices remained at $962.6 per ounce, following a 0.81% increase.
In the announcement of the Federal Open Market Committee (FOMC) interest rate meeting results, although expressing concerns about inflation, the Federal Reserve (FED) maintained its goal of cutting interest rates this year. This eased concerns about the risk of the FED not lowering rates or even raising them, as previously forecasted by the market. The US dollar and US bond yields continued to decline during the session, supporting the increase in precious metal prices.
Source: MXV
Related Posts
The dollar remained supported as escalating tensions in the Middle East fueled demand for the dollar as a safe-haven asset.
Metals News October 4, 2024
4 tháng 10, 2024
By the end of Thursday’s trading session, oil prices surged by 5% due to fears that escalating conflict in the Middle East could disrupt crude oil supplies.
Economic News October 04, 2024
4 tháng 10, 2024
Kết thúc phiên giao dịch ngày hôm qua (3/10), thị trường năng lượng rực xanh, trong đó, giá dầu tăng vọt hơn 5% và đang hướng lên mốc 80 USD/thùng trong bối cảnh lo ngại xung đột lan rộng có thể làm gián đoạn dòng chảy dầu thô toàn cầu.
Giá dầu tiếp tục ‘nóng’, giá nông sản đồng loạt giảm trước áp lực chốt lời
4 tháng 10, 2024
Related Post
Add paragraph text. Click “Edit Text” to update the font, size and more. To change and reuse text themes, go to Site Styles.
Add paragraph text. Click “Edit Text” to update the font, size and more. To change and reuse text themes, go to Site Styles.
Add a Title
Add paragraph text. Click “Edit Text” to update the font, size and more. To change and reuse text themes, go to Site Styles.
Add paragraph text. Click “Edit Text” to update the font, size and more. To change and reuse text themes, go to Site Styles.
Add a Title
Add paragraph text. Click “Edit Text” to update the font, size and more. To change and reuse text themes, go to Site Styles.
Add paragraph text. Click “Edit Text” to update the font, size and more. To change and reuse text themes, go to Site Styles.