Contrasting supply and demand dominate commodity market developments

According to the Vietnam Commodity Exchange (MXV), the world raw material market closed the trading session with mixed fluctuations.

Buying pressure prevailed towards the end of the session, helping the MXV-Index reverse course and rise 0.3% to 2,217 points.

The energy commodities market is "bright green". Source: MXV

The energy market yesterday received a series of positive news from the American Petroleum Institute (API) and the U.S. Energy Information Agency (EIA).

Following positive signals, the prices of both crude oil commodities rose by more than 1%. Specifically, Brent crude recovered to $68.05 per barrel, representing a 1.23% increase; while WTI crude also recorded an increase of approximately 1.42%, settling at $64.15 per barrel.

API data recorded a relatively modest drop in crude oil inventories, just under 1 million barrels, while data from the EIA showed a significantly sharper decline, by nearly 2.4 million barrels.

Meanwhile, US gasoline inventories continued to decline for the sixth consecutive week, falling by 1.24 million barrels.

Thus, in just the last 7 days, world crude oil prices have recorded an increase of 1.5 – 2%.

The agricultural commodities market is "in the red". Source: MXV

Conversely, the agricultural market was in the red as all seven commodities simultaneously declined in price. Notably, corn reversed course, losing 0.85% to $159.8 per ton, under pressure from both supply and demand.

Regarding supply, the U.S. Department of Agriculture 's (USDA) weekly crop report indicates the potential for a high harvest yield. In addition, many American farmers are accelerating the sale of old corn crops to free up storage for the new crop, contributing to a short-term increase in market supply.

In terms of trade, the outlook for US corn exports is not very promising. Analysts forecast export volumes for the week ending August 21st to reach only about 1-2 million tons, a sharp decrease from the 2.83 million tons of the previous week.

With abundant supply from the US, Brazil, and Ukraine, while export and domestic demand weaken, world corn prices are likely to remain under downward pressure in the short term.

Source: https://hanoimoi.vn/cung-cau-trai-chieu-chi-phoi-dien-bien-thi-truong-hang-hoa-714296.html