Coffee and agricultural product prices rise sharply

Commodity market today September 19: Commodity market fluctuates, facing profit-taking pressure Commodity market today September 20: MXV-Index extends its increasing streak to the 7th session

According to the Vietnam Commodity Exchange (MXV), at the close of the first trading session of the week (September 23), green continued to dominate the world raw material market, supporting the MXV-Index to increase by nearly 1% to 2,168 points. Notably, prices of many agricultural products recovered and increased after the decline at the end of last week. In addition, the industrial raw material market also witnessed a sharp increase in coffee prices in the context of supply in Brazil being affected by dry weather.

Thị trường hàng hóa hôm nay 24/9: Giá cà phê và nông sản quay đầu tăng mạnh

MXV-Index

Coffee prices soar on fears of sharp decline in output

At the end of the first trading session of the week, the prices of the two coffee products recovered after the downward adjustment session at the end of last week with an increase of 5.1% for Arabica coffee and 4.3% for Robusta coffee, bringing the prices of these two products to 5,812 USD/ton and 5,276 USD/ton, respectively. The expected sharp decrease in output in Brazil due to prolonged drought continued to be the fundamental reason for the price increase in yesterday's trading session.

Industrial raw material price list

According to the results of a field survey of 1,706 producers by the Faemg Senar System's technical and management support program (ATEG Café+Forte), the 2024 Arabica coffee harvest in Minas Gerais, Brazil's largest coffee-producing state, could decline by an average of 23% due to drought reducing expected yields.

In addition, last week, in response to extreme weather conditions in major coffee growing regions, the Brazilian government’s Crop Supply Agency (CONAB) cut its forecast for Brazil’s 2024 coffee harvest by more than 4 million bags to nearly 54.8 million bags, down 0.51% from 2023 and nearly 7% from its previous forecast. Arabica production fell by 2.52 million bags and Robusta by more than 1.5 million bags to 15.2 million bags compared to the previous report, down 6% from the previous year.

Rain has fallen in some coffee plantations in the south and southeast of Brazil, but much of the southeast remains water-stressed and hot. If the conditions continue, Brazil’s next coffee crop could be even more severely affected.

In the domestic market, recorded this morning (September 24), the price of green coffee beans in the Central Highlands and the Southern provinces increased in the same direction as the world coffee price, currently fluctuating between 121,000 - 121,600 VND/kg, 1,500 VND/kg higher than yesterday.

Soybean prices hit 7-week high

November soybean futures ended a sideways trend that had been in place since early September with a 2.69% gain after the close on September 23, bringing the commodity to a seven-week high of $381 per tonne. Buying was boosted early in the session amid strong US export results and a lackluster crop in Brazil.

Agricultural product price list

The US Department of Agriculture (USDA) said in its Export Shipments Report yesterday that the country shipped over 485,200 tonnes of soybeans last week, up slightly from about 401,280 tonnes a week earlier. In addition, the USDA also reported a sale of 165,000 tonnes of 2024-25 soybeans to an unnamed country yesterday. The above data shows that international demand for US soybeans has increased again and supported strong soybean prices.

In Brazil, hot and dry weather continues to delay new soybean plantings. Consulting firm AgRural reported that the 2024-25 soybean planting progress was at 0.9% of the plan as of September 19, up slightly from 0.06% a week ago and down from 1.9% a year ago. While some states such as Parana have received rain, the country’s largest producer, Mato Grosso, is still facing a prolonged drought. The delays in Brazil’s crop have raised concerns about the country’s soybean supply outlook and supported prices.

Green also covered the price list of two soybean products yesterday. The price of soybean meal for December contract led the group's increase with an increase of nearly 3%, bringing the listed price of this item to 362.3 USD/ton. In addition, the price of soybean oil for December contract also increased by more than 1% to 922.4 USD/ton.

Prices of some other goods