Sugar prices hit 4-year low, soybeans surge

The world raw material market is clearly differentiated, in which sugar prices fall to a 4-year low, soybeans increase strongly.

The market for industrial raw materials is "in the red". Source: MXV

According to the Vietnam Commodity Exchange (MXV), the industrial raw materials group attracted attention from domestic and international investors as it led the downward trend.

In particular, sugar prices fell to their lowest level in over four years. The price of raw sugar decreased by 3.4% to $318.7 per ton, while white sugar lost more than 2.1% to $422 per ton.

MXV believes that prolonged oversupply is the main reason for downward price pressure. International organizations forecast that the global sugar surplus in the 2025-2026 season could reach 3.73 million tons, an increase of more than 40% compared to previous forecasts, and could even reach 7.4 million tons – the highest level since 2018 – if favorable production scenarios occur.

The latest report indicates that Brazil – the world's largest sugar producer – continues to maintain stable supply for the 2025-2026 season, with a significant increase in sugarcane production for milling compared to last year. Sugar production in India, Thailand, and several Central American countries also shows positive signs.

Domestically, wholesale sugar prices in the Mekong Delta range from 17,000 to 17,150 VND/kg, while in the Lao Bao area, prices range from 15,700 to 16,400 VND/kg depending on the type. Factories are proactively lowering prices to clear their inventory.

The agricultural market is booming as prices of all commodities are rising. Source: MXV

Soybean futures for November delivery surged more than 2.4% to $392 per ton, reaching their highest level since late June.

According to MXV, investor optimism stems from news that the US President and the Chinese President may hold a bilateral meeting in South Korea next month, with the possibility of Beijing committing to purchasing "a significant amount" of US soybeans.

However, experts warn that this surge is primarily reflected in political expectations rather than actual supply and demand. Data from the US Department of Agriculture shows that soybean exports in the week ending October 23rd reached only 1.06 million tons, down more than 30% from the previous week. Meanwhile, Brazil – the world's largest supplier – is planting early and is expected to achieve a record yield of 178.5 million tons.

Source: https://hanoimoi.vn/gia-duong-xuong-day-4-nam-dau-tuong-tang-manh-721230.html