After US-China negotiations, optimism spreads in commodity markets

Dominant buying power supported the MXV-Index to increase 0.15% to 2,196 points.

Agricultural commodity market is flourishing. Source: MXV

According to MXV, the agricultural market reacted early to the results of the tariff negotiations. In particular, soybean prices jumped sharply by 1.85% to 393 USD/ton in yesterday's session.

Notably, two finished products, soybean meal and soybean oil, also increased sharply, up 1.36% to 328 USD/ton and 2.78% to 1,100 USD/ton, respectively.

The focus of the market in yesterday's trading session was the results of the negotiations between the US and China that took place on May 10, local time in Switzerland.

After months of trade tensions, the world's two largest economies agreed to reduce import tariffs for 90 days, fueling optimism in the market.

This opens up great expectations for agricultural exports, especially soybeans, in the coming time.

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

Contrary to the general trend in the market, the industrial materials group experienced a less positive trading session when most key items in the group simultaneously decreased in price.

Of which, Arabica coffee price lost nearly 4% to 8,222 USD/ton, Robusta coffee price also decreased more than 3% to 5,052 USD/ton.

According to MXV, coffee prices were under strong downward pressure in the last session, mainly due to the soaring USD after the US-China trade agreement, along with the prospect of continued positive supply.

The DXY index jumped sharply yesterday, reaching a one-month high, pushing the USD/BRL exchange rate up 0.26%, thereby boosting export activities in Brazil.

On the supply side, the latest revised report by Safras & Mercado released over the weekend raised its forecast for Brazil's 2024-2025 coffee production to 65.51 million 60-kg bags, up 4.9% from the 62.45 million bags forecast in December last year.

Source: https://hanoimoi.vn/sau-dam-phan-my-trung-tam-ly-lac-quan-lan-toa-thi-truong-hang-hoa-702055.html