Strong selling pressure in the world raw material market

Commodity market today, July 24, 2024: Overwhelming selling pressure returns to the world raw material market Commodity market today, July 26, 2024: World raw material commodity market has mixed developments

All 10 metals fell in price, with precious metals entering their third consecutive week of decline. The coffee market also recorded a volatile trading week, with Robusta and Arabica prices falling 5% and 3.3%, respectively, at the end of the session. Strong selling pressure in the trading market pushed the MXV-Index down 1.71% to 2,132 points.

Thị trường hàng hóa hôm nay ngày 29/7/2024: Lực bán mạnh mẽ trên thị trường hàng hóa nguyên liệu thế giới

MXV-Index

Precious metal prices continue to decline

The last trading week ended with red continuing to cover the metal price chart. For precious metals, silver and platinum prices entered their third consecutive week of decline. Of which, silver prices fell 4.37% to $28.02/ounce, a nearly three-month low. Platinum prices lost 3.03% of their value, closing the week at $944.4/ounce, a three-month low.

Metal price list

Last week’s better-than-expected US employment and GDP data eased concerns that the US economy might be facing a hard landing, reducing demand for safe-haven metals, which in turn increased selling pressure on silver and platinum. In addition, uncertainty over the US Federal Reserve’s interest rate outlook also weighed on precious metals prices. The CME FedWatch tool showed investors betting on an 87% chance of the Fed cutting interest rates by 25 basis points in September, down from 100% the previous week.

This week, the FED's July interest rate meeting will take place on the last two days of July 30-31 and the interest rate decision will be announced in the early morning of August 1. Currently, investors are almost certain that the FED will keep interest rates unchanged at this meeting. Therefore, what the market is more interested in is the comments in the press conference of FED Chairman Jerome Powell, these comments may reveal clues about the FED's interest rate roadmap. In addition, the US non-farm payroll report released on Friday (August 2) is also the focus of the market's attention.

Coffee prices cooled down sharply

At the end of the last trading week, Robusta coffee prices plunged 5.03% to $4,302/ton; Arabica coffee prices also lost 3.34% compared to the reference price, marking the second consecutive week of decline. Pressure from the USD/BRL exchange rate overwhelmed support from fundamental information in the market.

A weaker Brazilian real pushed the USD/BRL exchange rate up 1.08% last week, nearing its highest level in more than two years. The relative strength of the USD against the real helped stimulate demand for Brazilian coffee from farmers, thereby putting upward pressure on prices.

Industrial raw material price list

Coffee harvest in Brazil is also putting pressure on coffee prices. Progress reports show that farmers are stepping up their harvest. As of July 26, Brazil had harvested 81% of its 2024-25 crop, up from 74% a year earlier and 77% of the five-year average, according to consultancy Safras & Mercado. Dry weather is expected to help Brazilian farmers pick up the pace, aiming to complete the harvest early.

In the domestic market, recorded this morning (July 29), the price of green coffee beans in the Central Highlands and the Southern provinces is currently fluctuating around 123,400 - 124,000 VND/kg. This price is stable compared to yesterday but has decreased sharply by 2,000 - 3,000 VND/kg compared to the same time last week.

Prices of some other agricultural products