Oil prices rebound, agricultural product prices continue to rise

Commodity market today September 30: MXV-Index 'returns' to highest level in more than two months Commodity market today October 1: Cocoa prices drop sharply, corn prices improve after inventory report

Notably, the energy price index recorded a significant increase, leading the general market trend. The agricultural products group also experienced an exciting trading session when the prices of 6 out of 7 commodities increased simultaneously, of which, some commodities extended their increase to the third consecutive session. Closing, the MXV-Index increased by 0.8% to 2,223 points.

MXV-Index

Geopolitical tensions in the Middle East push oil prices up

At the end of yesterday's trading session, world oil prices reversed and increased sharply due to concerns about increased conflict in the Middle East after Iran suddenly carried out airstrikes on Israel in response to Tel Aviv's entry into Lebanon. At the end of the session, WTI oil prices increased by 2.44% to 69.83 USD/barrel, Brent crude oil increased by 2.59% to 73.56 USD/barrel.

Energy price list

Last night, alarms were sounded across Israel and explosions could be heard in Jerusalem and the Jordan River Valley after a missile strike believed to have come from Iran. Earlier, the US also warned that Iran was preparing to launch a ballistic missile attack against Israel on a similar scale to the attack Tehran staged earlier this year.

The Israel Defense Forces (IDF) immediately said it would respond to Iran's actions. Analysts said that the possibility of Israel attacking Iranian energy facilities could not be ruled out, and if this happened, about 1 million barrels of oil per day would leave the market. Escalating tensions in the Middle East, an important region on the world energy map, once again raised concerns about disruptions in crude oil supplies.

In another development, the American Petroleum Institute said this morning that the country's commercial crude oil inventories in the week ending September 27 fell by 1.46 million barrels, a decrease equivalent to the market forecast. The pressure on inventories in the US has thus continued to create support momentum in the market.

Green covers the agricultural market

According to MXV, at the end of yesterday's trading session, prices of many agricultural products increased simultaneously. In particular, the price of corn futures for December increased by 1% yesterday, bringing the price of this commodity to 168.89 USD/ton, extending the increase to the third consecutive session of price increase. This increase is likely to continue as the market receives positive information about demand as well as concerns about supply.

Agricultural product price list

In its Daily Export Sales report, the USDA said the country has sold 195,000 tons of corn for delivery in the 2024-2025 marketing year to an unnamed country. New corn orders are no longer uncommon, indicating that U.S. corn is in a certain competitive position in the market. The BNFS railroad has reissued a permit to ship corn to Mexico after a short-term ban. This has helped to restore trade with the largest U.S. corn importer, maintaining a positive export outlook.

The Crop Progress report showed that the US corn harvest is now at 21% of the projected area, up 7% from the previous week but below market expectations of 23%. Crop quality also declined, with only 64% rated as good/excellent, down about 1% from 65% the previous week. The delay in harvesting and the decline in crop quality have raised concerns about supply, supporting prices.

Wheat prices rose more than 2.5 percent to $220.10 a tonne in yesterday’s trading session, the biggest gainer among the agricultural commodities. The market was supported by concerns about supply, especially in the Black Sea region.

Ukraine’s grain exports fell to 3 million tonnes in September, down 16% from August, the Ukrainian Agribusiness Association (UAC) said. The association also said Ukraine exported mainly wheat last month, accounting for 78% of the total volume. According to UAC, Ukrainian farmers are reluctant to sell their crops immediately after harvest due to low prices. This has limited the country’s supply to the market, boosting buying pressure in the market.

On the domestic market, yesterday, October 1, the offering price of South American corn to our country's ports increased slightly. At Vung Tau port, the offering price of corn for delivery in November and December fluctuated between 6,350 - 6,400 VND/kg. Meanwhile, for delivery in January next year, South American corn was offered at around 6,500 - 6,550 VND/kg. At Cai Lan port, the offering price was recorded 50 - 100 VND lower than at Vung Tau port.

Prices of some other goods