MXV-Index weakens, agricultural market is on fire

Commodity market today, April 10: Commodity investment cash flow flows into agricultural market Commodity market today, April 11: Commodity index MXV-Index returns to 7-month peak

Selling pressure dominated all four commodity groups, causing the MXV-Index to reverse and fall 0.6% to 2,302 points. The total trading value of the entire Exchange reached nearly VND7,100 billion.

Thị trường hàng hóa hôm nay ngày 12/4: Chỉ số hàng hoá MXV-Index suy yếu, thị trường nông sản đỏ lửa

Agricultural market on fire

The agricultural products group closed yesterday with 6 out of 7 items closing in red. The market received a series of important reports in the evening session. This was also the main factor leading to the decline in agricultural product prices yesterday.

Despite a morning rally, corn prices quickly turned lower in the evening session as the April Export Sales and World Agricultural Supply and Demand Estimates (WASDE) reports were released. With most of the reports weighing on prices, corn prices ended yesterday down 1.27%.

On the supply side, in Argentina, the Rosario Grains Exchange (BCR) in its weekly report lowered its forecast for Argentina’s 2023-24 corn production to 50.5 million tonnes, down 6.5 million tonnes from its previous estimate. The main reason is the outbreak of brown planthoppers that have caused yield losses. This has raised concerns about the outlook for the Argentine crop and supported corn prices in the morning session.

Meanwhile, in terms of consumption demand, according to the Export Sales report released last night, USDA said that the US corn sales volume for the 2023-2024 crop year in the week of March 29 - April 4 reached 325,479 tons, down 65.7% from the previous week and below the market's forecast range. This reflects a sharp decline in international demand for US corn, putting pressure on prices.

In the WASDE report, the USDA maintained its outlook for major producers such as Brazil and Argentina despite recent negative crop conditions. In the US, while ending stocks for the 2023-24 crop year were cut by 50 million bushels from the March report to 2.122 billion bushels, they were still higher than market expectations of 2.102 billion bushels. This also contributed to the pressure on prices.

Agricultural Product Price List

In other notable developments, wheat prices also fell by 1.21%. The main pressure on prices came from the April WASDE report. The decline in wheat prices was only curbed when prices approached the support zone of $200/ton.

USDA forecasts U.S. wheat ending stocks for the 2023-24 marketing year at 698 million bushels, up from 673 million bushels in the March report and above the average analyst forecast of 690 million bushels. The increase in U.S. wheat stocks is largely due to lower domestic demand, which has put pressure on prices amid sluggish U.S. wheat exports.

Prices of some other goods