Abundant supply pulls down world commodity prices

The MXV-Index decreased by more than 0.6% to 2,325 points. Source: MXV

According to the Vietnam Commodity Exchange (MXV), profit-taking pressure and expectations of improved supply caused the MXV-Index to fall more than 0.6% to 2,325 points. Notably, cocoa prices continued to plummet, while platinum fell to its lowest level in the past two weeks.

Purchasing power is overwhelming on most key commodities. Source: MXV

At the end of the trading session, the industrial raw materials market witnessed overwhelming selling pressure on most key commodities. In which, cocoa prices fell more than 3.3% to 6,185 USD/ton, extending the weakening trend to the second consecutive session.

MXV said cocoa prices are under downward pressure amid more optimistic crop prospects in West Africa - the world's largest cocoa producing region.

Mondelez estimates that cocoa bean numbers in West Africa are about 7% higher than the five-year average, far exceeding the same period last year, making producers more optimistic about the quality of this year's crop.

On the demand side, MXV quoted Barry Callebaut Group as saying that sales of cocoa-containing products may decrease slightly due to high raw material prices, affecting the chocolate industry's profits.

Green and red colors intertwine in the metal market. Source: MXV

The metal market recorded clear differentiation in each commodity. Notably, platinum price fell 1.6% to 1,537 USD/ounce – the lowest level in two weeks.

The main reason comes from the weakening demand in China, the world's largest platinum consumer, when the manufacturing PMI index in October only reached 49 points, continuing to be in the narrowing zone. China's platinum imports in the first 9 months of the year decreased by more than 12% compared to the same period in 2023.

On a global scale, the World Platinum Investment Council (WPIC) said the supply shortage will last until at least 2029, with the shortfall being around 8% of global demand.

However, MXV believes platinum prices could soon recover thanks to expectations that the US Federal Reserve will cut interest rates in December.

Source: https://hanoimoi.vn/nguon-cung-doi-dao-keo-gia-hang-hoa-the-gioi-giam-722436.html