Buying power prevails, coffee continues to be "hot"

Positive sentiment returned to cover the world raw material market as buying power recovered strongly after two cooling sessions.

Corn and coffee continued to lead the market, causing the MXV-Index to close the session at 2,357 points, up nearly 0.4%.

Strong buying power remains in the agricultural market. Source: MXV

In the agricultural market, corn prices continued to increase for a second session, inching up nearly 0.5% to $171.9 per ton.

Strong buying power is returning amid signs of a global supply crunch. According to the US Department of Agriculture (USDA), as of November 16, the US had harvested only 91% of its corn acreage, down from 98% at the same time last year. This delay raises concerns about short-term supply.

In Argentina, prolonged rains continue to hamper planting. About 70% of farmland is flooded or over-wet, significantly slowing corn planting.

In addition to supply factors, corn prices are also supported by expectations of increased demand for ethanol production in the coming period. Although production decreased slightly compared to the previous month, data from the US Energy Information Administration (EIA) showed that ethanol production remained at a record high. US corn exports also improved, with deliveries in the week ending November 13 exceeding 2 million tons, up nearly 40% compared to the previous week.

Prices of two coffee products continue to increase sharply. Source: MXV

The most notable development was in the coffee market when both Arabica and Robusta continued to increase strongly. Arabica prices increased by nearly 3.2% to 9,156 USD/ton; Robusta increased by more than 2% to 4,573 USD/ton.

In the Central Highlands, prolonged heavy rains following Typhoon Kalmaegi caused localized flooding, delaying harvesting and drying. The progress of new crop production was delayed, temporarily limiting domestic supply.

Domestically, export businesses offer to buy coffee at around 112,500-113,500 VND/kg, but collecting goods is difficult because farmers tend to hold back and wait for higher prices.

In the world market, coffee prices are also affected by new tariff fluctuations in the US.

Arabica and Robusta inventories on ICE continued to fall to multi-month lows, contributing to the strengthening of the uptrend.

Source: https://hanoimoi.vn/luc-mua-gianh-uu-the-ca-phe-tiep-tuc-nong-723850.html