Contrasting supply and demand dominate commodity market developments

Buying pressure prevailed at the end of the session, helping the MXV-Index reverse, increasing 0.3% to 2,217 points.

Energy commodity market is "bright green". Source: MXV

The energy market yesterday received a series of positive information from the American Petroleum Institute (API) and the US Energy Information Administration (EIA).

With positive signals, the prices of both crude oil products increased by more than 1%. Specifically, Brent oil price recovered to 68.05 USD/barrel, corresponding to an increase of 1.23%; while WTI oil price also recorded an increase of about 1.42%, stopping at 64.15 USD/barrel.

API data showed a relatively modest decline in crude oil inventories, just under 1 million barrels, while EIA data showed a significantly larger drawdown of nearly 2.4 million barrels.

At the same time, US petroleum inventories continued to fall for the sixth consecutive week, down 1.24 million barrels.

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

Agricultural commodity market is "bright red". Source: MXV

On the other hand, the agricultural market was in the red as all 7 commodities decreased in price. Notably, corn turned down 0.85% to 159.8 USD/ton, under pressure from both supply and demand.

On the supply side, the USDA ’s weekly crop report shows a likely high harvest. In addition, many US farmers are pushing to sell old corn crops to free up storage for the new crop, contributing to adding more goods to the market in the short term.

On the trade front, the outlook for US corn exports is not very optimistic. Analysts forecast that export volume in the week ending August 21 will only reach about 1-2 million tons, a sharp decrease compared to 2.83 million tons last week.

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

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