World commodity price index reverses and recovers slightly

Commodity market today, June 26, 2024: World raw material prices plummeted Commodity market today, June 27, 2024: World raw material prices fluctuated

Red dominated the raw materials and metals markets. Meanwhile, buying power dominated the energy and agricultural markets. At the end of the day, the MXV-Index reversed and recovered 0.01% to 2,253 points.

Thị trường hàng hóa hôm nay ngày 28/6/2024: Chỉ số giá hàng hóa nguyên liệu thế giới đảo chiều hồi phục nhẹ

Oil prices continue to recover

At the end of the trading session on June 27, green dominated the energy price chart. In particular, two crude oil products led the group's increase. At the end of the session, Brent oil price increased by 1.34% to 86.39 USD/barrel, WTI oil price increased by 1.04% to 81.74 USD/barrel. Oil prices rebounded with the support of macro factors in addition to OPEC+ countries cutting exports.

Energy price list

Specifically, the US GDP in the first quarter of the year was revised up to 1.4%, higher than the 1.3% in the second adjustment. This reflects the strong performance of the US economy, thereby boosting the market's momentum. Meanwhile, according to Kpler, Saudi Arabia cut exports by about 900,000 barrels/day in June to 5.3 million barrels/day, while Russia also cut exports by about 300,000 barrels/day this month. Crude oil inventories at sea decreased last month by 50 million barrels.

Additionally, escalating tensions on the border between Israel and Lebanon also provided a boost to prices.

On the other side of the coin, natural gas was the only commodity to decline in the group, falling more than 2% to $2.69/MMBtu. Inventory pressure continues to weigh on the gas market, dragging down prices. According to the US Energy Information Administration (EIA), US natural gas inventories rose by 52 billion cubic feet in the week ending June 21, the ninth consecutive week of increases. In addition, on June 27, despite environmental objections, US federal regulators approved a liquefied natural gas project in Louisiana. With an export capacity of 20 million tons of LNG per year, the project will provide significant supplies to customers in Europe, Japan, and China.

Wheat prices soar on positive US export results

In the agricultural market, at the end of the trading session on June 27, important commodities also recorded strong fluctuations. Corn prices on the Chicago Board of Trade (CBOT) continued to decrease by 0.63% to 170.76 USD/ton and recorded the 6th consecutive session of weakness. The gloomy US export activities and the expected more abundant global supply in the 2024-2025 crop year have put pressure on prices.

Agricultural product price list

In its Export Sales report last night, the US Department of Agriculture (USDA) said the US sold 542,177 tonnes of 2023-2024 corn in the week ending June 20, up slightly by 6% from a week earlier and near the low end of analysts' forecasts of 400,000 to 1,100,000 tonnes. That suggests that international demand for US corn has not improved and has put a lot of pressure on prices.

On the global supply side, the International Grains Council (IGC) recently raised its forecast for global corn production in 2024-25 to 1.223 billion tons, up slightly by 3 million tons from last month’s estimate, thanks to improved prospects in Brazil. Specifically, this South American country is expected to produce 124.6 million tons of corn in the next season, up sharply from the 121.5 million tons estimated in May. The positive outlook for global supply in the next season has contributed to putting pressure on corn prices.

Wheat was the most volatile commodity in the agricultural group yesterday, increasing by 3.39% to $212.93/ton. Similar to corn, wheat prices were also significantly affected by the USDA and IGC reports, but in the opposite direction.

The USDA said the United States sold 667,173 tonnes of 2024-25 wheat in the week ended June 20, up 13.1% from a week earlier and exceeding the market's previous forecast of 200,000 to 600,000 tonnes. Strong international demand for US wheat contributed to the positive results, as crops in the world's largest wheat exporter, Russia, were damaged by natural disasters. The IGC cut its forecast for global wheat production in 2024-25 to 793 million tonnes, down 2 million tonnes from its previous estimate due to drought and frost damage in Russia. The country could harvest 81.8 million tonnes of wheat this year, compared with the IGC's estimate of 85.5 million tonnes last month.

Prices of some other goods