Oil prices rise slightly, corn turns down after US-China news

Brent and WTI crude oil prices rose slightly after the US-China trade deal and the Fed’s decision to cut interest rates. In contrast, corn prices fell due to pressure from abundant supplies and slowing ethanol demand in the US.

Mixed developments in the commodity market

Commodity markets recorded mixed developments in the trading session on October 30, with buying pressure dominating the energy group while selling pressure increased for agricultural products. Macro factors, especially the trade agreement between the US and China and the interest rate decision of the US Federal Reserve (Fed), strongly impacted investor sentiment.

Source: MXV

The energy market is booming

World crude oil prices recorded a slight increase. At the end of the session, Brent oil prices increased by 0.12% to 65 USD/barrel. Similarly, WTI oil prices also increased by about 0.15%, closing at 60.57 USD/barrel.

Impact of the US-China trade agreement

The main driver for the market is the new trade deal between the world’s two largest economies . US President Donald Trump announced a reduction in reciprocal tariffs on Chinese goods to 47%. In return, Beijing pledged to resume imports of US soybeans, maintain rare earth exports and control the trade of fentanyl. However, many analysts believe this may be just a temporary deal to ease tensions rather than a lasting solution.

Fed interest rate decision

Another supportive factor was the Fed's decision to cut interest rates by 0.25%, bringing them to a range of 3.75-4%. This move is expected to stimulate economic growth and energy demand. However, Fed Chairman Jerome Powell was cautious and said this could be the last rate cut in 2025.

Domestic gasoline prices adjusted up

Following the trend of the world market, domestic retail gasoline prices have been adjusted to increase sharply in the operating period at the end of October. Specifically:

• Diesel oil increased by 1,318 VND/liter (up 7.37%).
• E5RON92 gasoline increased by 710 VND/liter (up nearly 4%).
• RON95 gasoline increased by 762 VND/liter (up nearly 4%).

In this adjustment, the Ministry of Industry and Trade - Ministry of Finance decided not to set aside and not to use the Petroleum Price Stabilization Fund.

Corn prices weaken due to supply pressure

In contrast to the energy market, corn prices reversed course after three consecutive sessions of gains. December corn contracts on the Chicago Board of Trade (CBOT) fell 0.8% to close at $169/ton.

Source: MXV

Abundant global supply

The main reason for the upward pressure on prices is that global supplies are expected to remain high. The International Grains Council (IGC) has kept its forecast for world maize production in 2025-26 unchanged at 1.297 billion tonnes, up 4.7% from the previous season. The crop outlook in the southern hemisphere is also positive, with Brazil’s output expected to reach 137 million tonnes and South Africa’s expected to increase by 27%.

Ethanol demand in the US is slowing down.

In addition, demand for corn for ethanol production in the US is showing signs of slowing down. A report from the US Energy Information Administration (EIA) shows that ethanol production last week fell to 7.64 million barrels, while inventories increased 2% to 22.37 million barrels. This weakens demand for corn in the short term.

Investors' caution also increased as specific details on agricultural trade commitments in the US-China deal have yet to be announced, leaving the market waiting for clearer signals.

Source: https://baolamdong.vn/gia-dau-tang-nhe-ngo-quay-dau-giam-sau-tin-tuc-my-trung-399174.html