Soybean prices end three-session losing streak
At the close of trading on July 16, green covered most of the key agricultural products. In particular, soybean prices ended a series of three consecutive sessions of decline, recovering more than 1.8% to 372.4 USD/ton.
According to MXV, the main driving force supporting the market comes from optimism following expectations that US soybean exports to China will "break the ice" in the near future.
In addition, the market also received significant support after the latest announcement by US President Donald Trump on the trade agreement reached with Indonesia - one of the five largest soybean import markets of the US.
On the other hand, global supply is showing signs of increasing as the Rosario Grain Exchange (Argentina) has just adjusted its forecast for soybean production in the 2024-2025 crop year to 49.5 million tons, an increase of 1 million tons compared to the previous forecast.
In the domestic market, the price of dried soybeans recorded at Vung Tau port on July 15 was VND9,300/kg, while at Cai Lan port it was VND9,400/kg. Compared to the previous session, the price decreased slightly by VND50-100/kg, but in general, it has remained stable over the past month.
According to MXV, at the end of yesterday's trading session, the energy market witnessed overwhelming selling pressure when 4/5 commodities in the group simultaneously weakened. In particular, world oil prices had a slight decrease in the context of investors being cautious about signals about fuel consumption demand in the US.
At the end of the session, both major crude oil products decreased slightly by less than 0.3%. Specifically, Brent oil price stopped at 68.52 USD/barrel, corresponding to a decrease of 0.28%; while WTI oil price recorded a decrease of 0.21%, down to 66.38 USD/barrel.
According to the latest report from the US Energy Information Administration (EIA), in the week ending July 11, commercial crude oil reserves in the US fell sharply by 3.86 million barrels, contrary to the American Petroleum Institute (API) estimate of an increase of up to 19.1 million barrels.
However, it is worth noting that the data also showed that gasoline inventories in the US increased by 3.4 million barrels, despite the fact that the supply from refineries decreased by more than 800,000 barrels. Distillate fuel inventories also increased by 4.17 million barrels, accompanied by a decrease of more than 100,000 barrels. The above information has raised some concerns about the situation of gasoline consumption of Americans during the peak travel season.
However, energy demand has been supported by a better-than-expected economic performance in China, the world’s largest crude importer, with both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) reporting that global oil demand will continue to grow steadily, at least in the short term.
At the same time, the decline in oil prices was also restrained by rising expectations that the US Federal Reserve (Fed) will reduce its key interest rate, currently at a high level of 4.25-4.5%, starting from September at the latest.
In the “Beige Book” released yesterday, the Fed’s governors said that the world’s largest economy had stabilized in July. The number of governors who said that economic activity was declining fell from 6 to 2, while the number who said that it was increasing rose from 3 to 5; thereby, also showing the increase in energy demand in the US. However, the Fed can also use this to ignore the possibility of cutting interest rates, especially when the inflation target below 2% has not been achieved.
Currently, the prices of both crude oil products have decreased by more than 2% compared to a week ago and have also had a similar impact on Platts gasoline prices on the SGX floor.
Source: https://baochinhphu.vn/mxv-index-lien-tuc-dao-chieu-102250717142134814.htm
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