Soybean prices continue to rise to $390/ton

The Vietnam Commodity Exchange (MXV) reported that the global raw materials market closed yesterday's trading session with mixed results. Buying pressure remained dominant, pushing the MXV-Index up 0.2% to 2,217 points, extending its gains for the third consecutive session. Notably, driven by positive sentiment, prices of all seven commodities rose simultaneously. Meanwhile, in the energy market, crude oil prices weakened for the second consecutive session.

Giá đậu tương nối dà đà tăng lên mức 390 USD/tấn

MXV-Index

Argentina removes tax incentives for soybeans

At the end of the trading session on May 21, the positive sentiment continued to be maintained in the agricultural market with green covering. In particular, soybean prices extended their increase to the third consecutive session when they increased by 0.93% to 390 USD/ton. This increase mainly came from concerns about the decrease in supply in major producing countries.

Agricultural product price list

The main impetus comes from Argentina's confirmation that it will not renew its preferential tax policy on corn, soybeans, and related products, causing the export tax on raw soybeans to increase again to 33% from July 1st, and on soybean meal and oil to 31%. This decision is expected to significantly impact global supply, especially since Argentina is one of the world's largest exporters of soybean meal.

Regarding weather conditions, in the US, cool and humid conditions in the Midwest this week could cause short-term delays to planting, although overall crop progress remains above historical average. Next week, heavy rains are forecast to affect Missouri and spread south, while the Midwest will be drier. If this continues and is accompanied by high temperatures, concerns about supply could increase, further supporting soybean prices.

On the other hand, the rise in soybean prices was capped by strong exports from Brazil, suggesting that supplies remain ample. According to the Brazilian Grain Exporters Association (ANEC), the country's soybean exports in May are expected to reach 14.5 million tonnes, up from last week's estimate of 14.2 million tonnes.

In the soybean products, both oil and meal recorded slight gains. Soybean oil was supported by expectations of the 45Z biofuel credit policy, despite the return of lower energy prices. Meanwhile, soybean meal prices increased due to supply concerns in Argentina, where heavy rains in key production areas could disrupt processing, boosting buying in the market.

Energy price list in red

According to MXV, the energy market was deep in red yesterday. Oil prices continued to decrease slightly yesterday, when positive signals about US-Iran relations appeared.

At the end of the trading session, Brent oil price recorded a decrease of 0.72%, down to 64.91 USD/barrel. WTI oil price also fell to 61.57 USD/barrel, corresponding to a decrease of about 1.58%.

Energy price list

The market came under pressure after the U.S. Energy Information Agency (EIA) released its U.S. commercial crude oil inventory data. Similar to the American Petroleum Institute (API) estimate of an increase of approximately 2.5 million barrels released on May 20th, the EIA data also showed an increase of about 1.33 million barrels in commercial crude oil inventories for the week ending May 16th, contrary to most market forecasts of a decrease of 900,000 to 1.3 million barrels, bringing the total crude oil inventory to 443.2 million barrels.

The forecasts were made due to expectations of increased demand in the US as the peak travel season approaches. However, not only crude oil but also other related commodities, especially gasoline, recorded increased inventories last week, raising concerns about demand in the US in the coming time and putting downward pressure on oil prices.

Prices of some other goods