Robusta coffee prices hit historic high

Commodity market today November 29, 2024: Robusta coffee prices increased slightly by 0.6%, continuing to anchor at a historical peak in the context of Arabica coffee trading suspension.

The Vietnam Commodity Exchange (MXV) said the world raw material market was quite quiet as most commodities were temporarily suspended for the US Thanksgiving holiday. The industrial raw material group continued to receive the market's attention when the prices of 4 out of 5 traded commodities increased. In addition, the prices of two precious metals, silver and platinum, also increased slightly. Closing, the MXV-Index was flat at 2,178 points.

Thị trường hàng hóa hôm nay 29/11: Giá cà phê Robusta neo đỉnh lịch sử

MXV-Index

Robusta coffee prices hit historic high

Closing yesterday's trading session, the price list of industrial raw materials continued to witness a green cover with 4 out of 5 items increasing in price. Yesterday, the New York Intercontinental Exchange (ICE US) was closed for Thanksgiving, most items in the group were closed for trading.

Industrial Raw Material Price List

Robusta coffee prices rose slightly by 0.6%, remaining at a historic high amid the suspension of Arabica coffee trading. There was no new information on the market, coffee prices remained high due to concerns about supply in major producing countries and the shift of inter-market money flows.

In the domestic market, coffee prices in the Central Highlands and the Southeast this morning (November 29) were recorded at 128,000 - 128,800 VND/kg, an increase of 1,700 VND/kg compared to yesterday. However, compared to the same period last year, prices have doubled.

In another development, white sugar prices fell 0.7% from the reference price, despite a narrowing sugar output in Brazil. The Brazilian government's Crop Supply Agency said that the country's sugar production in the 2024-2025 crop year is expected to reach 44 million tons, down 2 million tons from the previous season.

Previously, the US Department of Agriculture (USDA) lowered its forecast for Brazil's 2024-2025 sugar production to 43 million tons, down 1 million tons from its initial forecast and 2.5 million tons lower than the 2023-2024 crop. Extreme weather with record drought and large fires have damaged the current crop.

In addition, in a survey by S&P Global, sugar production in the region is expected to reach 979,000 tons in the first half of November, down 55.5% compared to the same period last year. Currently, the market is still waiting for official figures from the Brazilian Sugarcane Industry Association (UNICA).

Metals group moves quietly in thin trading day

According to MXV, the metal market was relatively quiet with thin liquidity as the US was closed for Thanksgiving. Since the market closed early on the holiday, prices will be calculated as of 2:30 a.m. this morning Vietnam time. For precious metals, silver prices increased by about 0.41% to 30.7 USD/ounce, while platinum prices also increased by 0.58% to 937 USD/ounce.

Metal Price List

Precious metals continue to benefit from the risk of escalating geopolitical conflicts. Although the ceasefire agreement between Israel and Hezbollah has eased the conflict in the Middle East, tensions between Russia and Ukraine have shown no signs of abating. Precious metals are considered a safe haven investment channel whenever the economy fluctuates, so investors continue to transfer money into this investment channel to ensure profits, especially in the context of a weak USD, making investment costs cheaper. Currently, the Dollar Index has fallen from a two-year peak as demand for buying the greenback following the "Trump trade" wave is gradually cooling down.

In addition, President-elect Donald Trump’s announcement of tariffs on several countries has also increased market uncertainty, thereby boosting precious metal prices. Specifically, Donald Trump recently announced that he would impose a 25% tariff on all goods imported from Canada and Mexico into the US. In addition, he also announced that he would impose an additional 10% tariff, higher than any additional tariffs, on imports from China.

For base metals, COMEX copper prices fell about 0.14% to $9,102 a tonne after a relatively volatile session.

On the one hand, copper prices are being supported by some signs of increased supply risks. Recently in Peru, the world’s third-largest copper producer, thousands of miners blocked highways, disrupting copper mining and transportation there. Earlier, the International Copper Study Group (ICSG) warned that the global refined copper market was in a deficit of 131,000 tonnes in September, marking the first time in seven months that the global copper market has faced a supply deficit.

On the other hand, the weak consumption outlook due to the prolonged crisis in the real estate sector in China continues to put pressure on prices. Moreover, the latest economic data shows that the economy is still sluggish, despite the recent large-scale stimulus packages of the Government. As a barometer of the health of the economy, the outlook for copper prices has also become less optimistic.

Prices of some other goods