Agricultural products led the trend of the entire commodity market , when 6 out of 7 items recorded relatively strong decreases.
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Data from the Vietnam Commodity Exchange (MXV) showed that at the close yesterday, August 15, the selling pressure completely overwhelmed all four groups of world raw materials, causing the MXV-Index to extend its decline to the fourth consecutive day, after falling 1.52% to 2,221 points, the lowest level in the past month. However, the total trading value of the entire Exchange recorded an increase for five consecutive days, reaching over VND3,700 billion, up nearly 27% compared to the previous day.
Agricultural products led the trend of the entire commodity market, when 6 out of 7 items recorded relatively strong decreases.
Corn prices fell 2.51%, ending a sideways trend that had lasted for nearly 10 previous sessions. Prices closed at their lowest level since December 2020, after breaking the bottom set in late July. MXV said the selling pressure was mainly due to market expectations for the US corn crop.
Weather conditions have turned completely positive heading into August, after growing regions in the US had been facing concerns about prolonged drought throughout the period since late April. Crop quality has been trending up in recent weeks.
According to the report released by the US Department of Agriculture (USDA) this morning, the percentage of corn that is rated good-excellent increased to 59% of the area from 57% last week. This figure also exceeded market expectations and contributed to the weakness in prices since yesterday morning.
In addition, according to the forecast of the US National Oceanic and Atmospheric Administration (NOAA), the weather will continue to improve in the coming period. Concerns about the US crop have gradually been eliminated, making the downward trend of corn prices even more solidified.
Similar to corn, wheat prices also recorded a sharp decline, closing just below the psychological support zone of $220/ton, due to the positive outlook for the US crop. Also in the USDA report this morning, for the spring crop, crop quality improved slightly compared to last week with 42% of the crop area achieving good - excellent instead of remaining as expected by the market. The harvest rate also accelerated and reached nearly a quarter of the expected area as of this week. Meanwhile, the progress of the winter crop harvest is also entering the final stage and is equivalent to the average speed of the past 5 years.
In addition, European efforts to support Ukraine or alternative transport routes by road and rail also bring more positive prospects for trade flows from Ukraine and strengthen sales of this item.
This morning, in the domestic market, the price of imported US corn at the port was adjusted down in line with the world trading price. At Cai Lan port, the asking price was at 6,200-6,400 VND/kg for corn delivered in the fourth quarter of this year. At Cai Mep port, the asking price fluctuated between 6,150-6,300 VND/kg.
According to NDO
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