Coffee and agricultural product prices increase sharply

Commodity market today, September 19th: Commodity market experiences sideways movement, facing profit-taking pressure. Commodity market today, September 20th: MXV-Index extends its winning streak to the 7th session.

According to the Vietnam Commodity Exchange (MXV), at the close of trading on Monday (September 23), green continued to dominate the global raw materials market, supporting the MXV-Index's nearly 1% increase to 2,168 points. Notably, prices of many agricultural products recovered and rose after the decline at the end of last week. In addition, the industrial raw materials market also witnessed a sharp increase in coffee prices amidst supply disruptions in Brazil due to drought conditions.

Thị trường hàng hóa hôm nay 24/9: Giá cà phê và nông sản quay đầu tăng mạnh

MXV-Index

Coffee prices surged amid fears of a sharp drop in production.

Closing the first trading session of the week, the prices of both coffee commodities recovered after the downward correction at the end of last week, with Arabica coffee increasing by 5.1% and Robusta coffee by 4.3%, bringing the prices of these two commodities to $5,812/ton and $5,276/ton respectively. The expected sharp decline in production in Brazil due to prolonged drought continued to be the main reason for the price surge in yesterday's trading session.

Industrial raw material price list

According to the results of a field survey of 1,706 producers conducted as part of the Faemg Senar (ATEG Café+Forte) management and technical support program, the 2024 Arabica coffee harvest in Minas Gerais, Brazil's largest coffee-producing state, could decrease by an average of 23% due to drought reducing expected yields.

Furthermore, last week, amid extreme weather events in major coffee-growing regions, the Brazilian government's Crop Supply Agency (CONAB) cut its forecast for Brazil's 2024 coffee harvest by more than 4 million bags, to nearly 54.8 million bags, 0.51% lower than in 2023 and almost 7% lower than the previous forecast. Arabica production decreased by 2.52 million bags and Robusta production decreased by more than 1.5 million bags to 15.2 million bags compared to the previous report, 6% lower than the previous year.

Currently, rain has fallen in some coffee plantations in southern and southeastern Brazil, but much of the southeastern region remains dry and hot. If this situation continues, the next Brazilian coffee crop will be even more severely affected.

In the domestic market, as of this morning (September 24th), the price of bulk green coffee beans in the Central Highlands and Southern provinces has increased in line with world coffee prices, currently fluctuating between 121,000 and 121,600 VND/kg, 1,500 VND/kg higher than yesterday.

Soybean prices hit a 7-week high.

Soybean futures for November delivery ended a sideways trend that had lasted since the beginning of September with a 2.69% increase after the close of trading on September 23, bringing the price to close at $381 per ton, reaching its highest level in seven weeks. Strong buying pressure emerged immediately after the opening, driven by positive US export data and the ongoing uncertainty surrounding the Brazilian crop.

Agricultural product price list

The U.S. Department of Agriculture (USDA), in its Export Shipments Report yesterday, said the country exported over 485,200 tons of soybeans last week, a slight increase from approximately 401,280 tons the previous week. In addition, the USDA also reported a 165,000-ton shipment of 2024-2025 soybeans sold to an unnamed country yesterday. These data indicate a rebound in international demand for U.S. soybeans, supporting a sharp rise in soybean prices.

In Brazil, hot, dry weather continues to delay the planting of the new soybean crop. Consulting firm AgRural reported that the progress of the 2024-2025 soybean planting was 0.9% as of September 19th, a slight increase from 0.06% a week earlier but lower than the 1.9% recorded at the same time last year. While some states like Parana have received rain, the country's largest producing state, Mato Grosso, continues to face prolonged drought. The delay in the planting season in Brazil raises concerns about the outlook for soybean supply and supports prices.

The green color also dominated the price charts for two soybean commodities yesterday. The December soybean meal contract led the gains, rising by nearly 3% to $362.3 per ton. In addition, the December soybean oil contract also increased by more than 1% to $922.4 per ton.

Prices of some other goods