Energy prices have a multifaceted impact on the market, with speculative capital driving profit-taking. At closing, the MXV-Index fell slightly by 0.1% to 2,889 points.
According to the Vietnam Commodity Exchange (MXV), the cocoa market continues to be the focus of international investors as prices have risen for the eighth consecutive session.
At the close of trading, July cocoa futures rose more than 7%, to $4,427 per ton. In just over a week, cocoa prices have increased by 34.3%, marking one of the strongest surges since the beginning of the year.
The main driver supporting prices continues to come from supply concerns in West Africa – a region that accounts for more than 60% of global cocoa production. MXV stated that the continued blockade of the Strait of Hormuz is disrupting energy and fertilizer supply chains, thereby driving up input costs in key producing countries such as Ivory Coast and Ghana. This is putting further pressure on cocoa farming in the region, increasing the risk of reduced yields in the next crop year.
At the same time, the market is also concerned that El Niño could return from next month, making the weather outlook in West Africa less favorable.
Beyond fundamental factors, speculative activity also contributed to amplifying the upward momentum. The Commitment of Trading (COT) report shows that investment funds currently hold net short positions in New York cocoa at their highest level in over three years, with nearly 19,900 contracts. As prices surged, pressure to close short positions continued to drive the market higher.
Conversely, the soybean oil market reversed course and weakened after a period of rapid growth. At the close of trading, July soybean oil futures fell 1.16% to $1,634.7 per ton.
According to MXV, the main reason stems from more positive expectations in the negotiation process between the US and Iran. Information about the possibility of the two sides reaching a memorandum of understanding to de-escalate the conflict and reopen the Strait of Hormuz has pushed WTI crude oil prices below $95 per barrel.
As energy prices weaken, soybean oil's advantage as a feedstock for biofuel production also diminishes, causing speculative capital to withdraw from the vegetable oil market.
At the same time, less-than-positive US export data coupled with favorable planting progress in the US is also increasing downward pressure on soybean prices and related products in the short term.
Source: https://hanoimoi.vn/ca-cao-noi-dai-da-tang-mxv-index-giang-co-748873.html
Comment (0)