Source: baochinhphu.vn
Data from MXV shows that, at the end of the trading session on February 14, red dominated the commodity market, pulling the MXV-Index down 1.05% to 2,108 points, extending the decline for the third consecutive session. next. The transaction value of the entire Department increased by 35% at VND 3,800 billion. In particular, the transaction value of agricultural products increased sharply by more than 103%, accounting for nearly 32% of the total value.
Corn prices ended the struggling trend
According to MXV, at the close of trading on February 14, there were 6/7 agricultural products with reduced prices. In particular, March contract corn prices ended the long struggling trend in the first two sessions of the week and decreased sharply by 1.51%. The demand outlook in the US and the less positive crop situation in South America were the main factors driving corn selling yesterday.
The weekly report of the US Energy Information Administration (EIA) shows that the country’s ethanol production in the week ending February 9 reached 1.08 million barrels/day, an increase of 50,000 barrels/day compared to the previous week. one week ago. However, ethanol inventories as of February 9 increased by more than 1 million barrels compared to a week ago, to 25.8 million barrels. This raises concerns that the US will reduce the rate of ethanol production in the following weeks, thereby reducing demand for corn and putting great pressure on prices.
The Rosario Grains Exchange (BCR) said abundant rain in recent days in Argentina’s main agricultural production areas has supported the country’s corn crop. The rains have helped ease the impact of the heat wave since late January. BCR still cautiously maintains Argentina’s corn output forecast this year at 59 million tons. Still, the arrival of rain has strengthened the crop outlook in Argentina and weighed on prices.
Wheat prices also plummeted yesterday and were the commodity leading the decline of the entire agricultural product group. There was a time when wheat prices escaped a sideways range, but bottom-fishing buying at the end of the session helped partially narrow the price’s decline. Favorable crop prospects in Ukraine are the main factor that helps explain price movements. Closing yesterday’s session, wheat prices recorded a decrease of 2.01%.
Consulting firm APK-Inform said winter weather in Ukraine is mostly favorable for the growth of winter crops. Most areas have adequate soil moisture and only a few places in Kherson and Odessa have soil moisture lower than average. Currently, Ukrainian farmers have started sowing seeds for the spring crop. The positive crop outlook for one of the world’s top grain suppliers has put pressure on wheat prices.
Coffee prices fell for the third consecutive session as supply improved
Closing yesterday’s trading session, prices of two coffee products decreased for the third consecutive session. March contract Arabica price lost 3.08% and May contract Robusta price was 2.13% lower than the reference. Improved supply in leading Arabica producing countries has created more peace of mind about supply capacity in the market, thereby putting pressure on prices.
In January, Brazil’s coffee bean exports increased sharply, 45.4% higher than estimates from the CECAFE Coffee Exporters Association and 10.5% from the Brazilian government. At the same time, the Colombian Coffee Federation also said that the country’s coffee exports in the first month of 2024 increased by 12.4% over the same period last year.
Besides, the recovery of inventory data also contributed to pushing the market to cut net buying positions. As of February 13, the standard Arabica coffee inventory on the ICE-US Department stood at 297,445 bags, up 19% compared to 249,829 bags at the end of January.
Moreover, Robusta prices are at a record high, causing the market to shift to poor quality Arabica, contributing to cooling down the heat on the price of this product.
On the domestic market, on the morning of February 15, the price of green coffee in the Central Highlands and Southern provinces decreased by 1,200 VND/kg. Accordingly, domestic coffee is purchased around 76,900 – 78,000 VND/kg.
