Cocoa prices plunge more than 6%, crude oil falls sharply

Commodity markets reversed to decline

The world commodity market reversed to a decline in the trading session on November 19, with red spreading across most commodity groups. Most notably, cocoa prices plunged more than 6%, while crude oil prices also recorded a significant decrease.

Cocoa prices hit a near two-year low

At the end of the session, cocoa prices fell sharply by more than 6% to $4,943/ton , the lowest level in nearly two years. According to MXV, the main reason comes from the information that the European Union (EU) is considering postponing the implementation of the Anti-Deforestation Regulation by one year. If approved, the regulation, which was expected to take effect at the end of December, will be postponed, reducing pressure on supply from regions such as Africa, Indonesia and South America.

In addition, the supply from Ivory Coast continues to show positive signs. The amount of cocoa arriving at ports in the week ending November 16 reached 105,000 tons . Accumulated from the beginning of the 2025-2026 crop year, the total amount of cocoa arriving at ports reached 516,000 tons . Favorable weather with light rains also helped the plants grow well, speeding up the harvest.

Expectations of a large agricultural tariff reduction package announced by US Treasury Secretary Scott Bessent also added downward pressure on prices. However, the decline was partly curbed by Ivory Coast cocoa crushing volumes so far this season, which have fallen by 25.4% year-on-year to 44,075 tonnes, according to data from the GEPEX Exporters Association.

Crude oil prices fall on hopes of peace talks

In the energy group, two crude oil products led the decline. At the end of the session on November 19, Brent oil price decreased by 1.8% to 63.66 USD/barrel , while WTI oil price decreased by 2.1% to 59.44 USD/barrel .

According to Axios, the main reason is the news that Washington is pushing for a peace framework for the Russia-Ukraine conflict. Analysts say that if an agreement is signed, geopolitical risks will decrease, paving the way for Russian oil supplies to return to the market and increasing concerns about oversupply.

The inventory report from the US Energy Information Administration (EIA) also showed mixed signals. Although crude oil inventories fell by 3.43 million barrels, gasoline inventories rose by 2.3 million barrels and distillate inventories increased by 171,000 barrels, indicating that fuel demand was not as strong as expected.

Financial pressures also increased as the dollar index rose to a two-week high. Minutes of the US Federal Reserve meeting showed officials remained cautious about easing policy, reducing expectations of a December rate cut. This helped strengthen the dollar, putting pressure on commodities priced in the currency such as crude oil.

However, the decline in oil prices was limited by the news that Russian oil product exports in the first half of November fell to a more than three-year low and refinery capacity was affected. In the short term, oil prices are expected to fluctuate in a narrow range as the market awaits new policy signals and developments on geopolitical tensions.

Source: https://baolamdong.vn/gia-ca-cao-lao-doc-hon-6-dau-tho-giam-sau-403969.html