World raw material prices plummet

Last week, the world raw material market was in the red, coffee prices plummeted, and oil prices continued to decline for a second week.

The Vietnam Commodity Exchange (MXV) said that with 4 consecutive sessions of decline, closing the last trading day of the week (May 30), the MXV-Index fell 2.36% to 2,150 points.

Energy commodity market in red. Source: MXV

According to MXV, all 5 energy products were in red. At the end of the week, WTI oil price decreased by 1.2% compared to the trading session on May 23, falling to 60.79 USD/barrel. Meanwhile, Brent oil contract price for July delivery fell to 63.9 USD/barrel, down 1.36%.

Oil prices' slide on market expectations of an OPEC+ output decision extended into a second straight week, despite fresh reports of temporary supply disruptions.

After nearly two weeks of waiting, OPEC+’s official decision on July production levels was finally made on May 31. As widely expected in the market, OPEC+ increased production in July by 411,000 barrels per day, the third consecutive time this year.

This decision is likely to continue the downward trend in oil prices in the early trading sessions this week.

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

Meanwhile, the price of Arabica coffee for July contract on the New York floor decreased for the third consecutive week, losing 5.14%, at 7,550 USD/ton; the price of Robusta coffee for July contract on the London floor also decreased sharply by 5.58%, stopping at 4,510 USD/ton.

Arabica coffee prices hit a seven-week low and Robusta coffee fell to a six-and-a-half-month low.

Robusta coffee is leading the overall downward trend, as new crop shipments in Brazil and Indonesia are putting pressure on prices across the coffee market.

Information on coffee exports from Brazil and Vietnam is a factor that has restrained the decline of the coffee market in recent times.

Specifically, according to the latest preliminary statistics from Cecafe, Brazil's coffee exports in May reached more than 2.6 million 60-kg bags, down 35.8% over the same period last year.

Besides, according to the Import-Export Department ( Ministry of Industry and Trade ), Vietnam's coffee exports from the beginning of the year to May 15 reached over 736,580 tons, down 5.5% over the same period last year.

Source: https://hanoimoi.vn/gia-hang-hoa-nguyen-lieu-the-gioi-lao-doc-manh-704254.html