Cocoa prices continue to lead the decline

According to the Vietnam Commodity Exchange (MXV), the global raw materials market showed mixed performance in yesterday's trading session (October 24).

At closing, the MXV-Index edged down 0.06% to 2,182 points. Notably, 7 out of 9 industrial raw materials, including coffee, were in the red. In addition, the metals market also showed mixed performance, but the fluctuations were not significant.

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MXV-Index

Cocoa prices continue to lead the decline.

On the industrial raw materials price chart, cocoa prices continued to lead the decline in the industrial raw materials group after losing 3.5% in yesterday's session. Notably, the downward pressure came from the prospect of improved crop and export prospects from Ivory Coast - the world's largest cocoa producer and exporter.

Industrial raw material price list

Specifically, the Coffee and Cocoa Council (CCC) has raised its estimate for Ivory Coast's cocoa production in the 2024-2025 season to 2.1-2.2 million tons, a 10% increase compared to the previous season, thanks to favorable weather conditions. At the same time, according to exporters' estimates, 193,000 tons of cocoa have already arrived at ports in the country during the first 20 days of the 2024-2025 season, a 13.5% increase compared to the same period.

Meanwhile, cotton prices also fell 0.63% due to strong US cotton export figures. According to the export report for the week of October 11-17, US cotton sales reached 169,700 bales, up 6% from the previous week and 57% higher than the four-week average. Simultaneously, cotton exports reached 98,400 bales, up 70% and 16% respectively from the previous week and the four-week average.

The metals market is experiencing mixed performance.

At the close of yesterday's trading session, the metals market showed mixed performance, with all commodities recording low volatility, changing by no more than 0.1% compared to the reference price.

Specifically, for precious metals, silver prices fell slightly by 0.13% to $33.79 per ounce, while platinum prices recovered by 0.38% to $1,033.6 per ounce. Amid conflicting fundamental information, precious metal prices showed a clear divergence.

Metal price list

On the one hand, concerns about uncertainty surrounding the upcoming US presidential election, along with ongoing conflicts in the Middle East, are driving investors to hold precious metals as a hedge against risk, thereby supporting prices. On the other hand, with the US economy continuing to show more positive signs, the safe-haven role of precious metals is gradually diminishing as the market shifts funds to riskier investment channels such as the US stock market.

In addition, the US Department of Labor reported yesterday that the number of initial jobless claims in the US fell to 227,000 last week. Furthermore, preliminary data from S&P Global showed that US business activity continued to improve in October, with the manufacturing and services Purchasing Managers' Index (PMI) reaching 47.8 and 55.3 points respectively, both higher than expectations and the previous month's figures.

For base metals, all commodities experienced relatively narrow price fluctuations. The most notable development was the LME zinc price, which rose 0.97% to $3,174.5 per ton – its highest level in 20 months.

The recent sharp rise in zinc prices is primarily driven by concerns about supply disruptions. According to Bloomberg, leading zinc producer Teck Resources has lowered its production targets following a fire at its Canadian smelter. Specifically, Teck stated that its refined zinc production this year could be up to 12% lower than previously projected, equivalent to a reduction of approximately 40,000 tons. While this 40,000-ton reduction may not have a significant impact given the global supply of around 14 million tons, it comes at a time of heightened concern about supply disruptions.

Prices of some other goods