MXV-Index falls to its lowest level in over three weeks.

(Chinhphu.vn) - According to the Vietnam Commodity Exchange (MXV), selling pressure continued to dominate the global raw materials market yesterday. Weakness was evident in the industrial raw materials market, while crude oil prices recovered ahead of the OPEC+ meeting. The MXV-Index closed down more than 0.6% at 2,177 points.

World sugar prices have fallen for four consecutive sessions.

At the close of trading yesterday, the industrial raw materials market plunged into the red, with 8 out of 9 commodities experiencing price declines. Specifically, the price of July sugar futures fell 1.86% to $372.58 per ton, marking the fourth consecutive day of weakness and reaching its lowest level in nearly four months. Additionally, the price of August white sugar futures also saw a 2.32% decrease to $471.4 per ton – its lowest level since January of this year.

According to MXV, the oversupply situation continues to be the main reason for the prolonged pressure on world sugar prices. A report from the US Department of Agriculture (USDA) on May 22nd indicated that global sugar production for the 2025-2026 crop year is expected to reach 189.3 million tons, a 4.73% increase compared to the previous crop year. Meanwhile, global sweetener consumption is projected to reach only 177.9 million tons, a 1.4% increase compared to the same period of the 2024-2025 crop year, resulting in an oversupply of nearly 11.4 million tons – double the surplus of the previous crop year.

Furthermore, according to government data, the sharp decline in sugar imports from major consuming countries worldwide during the first quarter clearly reflects the decrease in sugar consumption, directly impacting its price. Specifically, the total import of cane sugar, beet sugar, and pure sucrose in solid form by the US and EU in the first quarter reached just over 900,000 tons, a sharp decrease of 28% compared to the same period last year. Notably, the European market recorded a decrease of over 50% in sugar imports, while the figure for the US was 19%. In addition, other markets such as Indonesia, Malaysia, and South Korea also witnessed a downward trend in imports during the first quarter of the year.

In terms of production, favorable weather conditions continue to support the Indian sugar industry. The government forecasts this year's monsoon rainfall to reach 106% of the long-term average, marking the second consecutive year of above-average rainfall. According to the Indian Meteorological Department (IMD), normal rainfall is defined as between 96% and 104% of the average 35 inches during the monsoon season, which runs from June to September.

According to MXV, the energy market saw a strong rebound in buying activity yesterday. Brent crude oil closed at $64.9 per barrel, a 1.26% increase. WTI crude oil also rose 1.56%, reaching $61.84 per barrel. This upward trend occurred despite forecasts of OPEC+ potentially increasing production next month, primarily due to concerns about supply disruptions in Venezuela and Canada.

Yesterday, the Organization of Petroleum Exporting Countries and its partners (OPEC+) held a meeting focused on establishing a baseline oil production mechanism for 2027, rather than discussing July production levels. Another meeting of the eight key OPEC+ members is still scheduled for May 31st, and it is highly likely that a decision on July production levels will be made at this meeting.

Simultaneously, the market faces the risk of supply disruptions from Venezuela and Canada. The administration of US President Donald Trump issued a limited authorization allowing energy giant Chevron to retain assets in Venezuela, including a stake in its oil joint venture with Venezuela's national oil company (PDVSA). However, under the new authorization, Chevron cannot operate oil fields in Venezuela, export oil, or expand its operations.

There had been earlier concerns about supply from Canada when a wildfire in Alberta province forced the temporary shutdown of some oil and gas production. The fire, which spread across approximately 1,600 hectares, burned out of control near the town of Swan Hills in northern Alberta.

Additionally, the American Petroleum Institute (API) has released its estimates of US crude oil inventories. Contrary to most market predictions of an increase, the week ending May 23rd saw a decrease of 4.24 million barrels, reversing the approximately 2.5 million barrel increase from the previous week. The US Energy Information Agency (EIA) will also release data on this matter today.

Source: https://baochinhphu.vn/mxv-index-ve-muc-thap-nhat-trong-hon-ba-tuan-102250529101412789.htm