Commodity market 5/21: Buying power dominates the market...

In the agricultural market, at the end of the trading session on May 20, positive sentiment continued to spread when all 7 items in the agricultural group closed in the green. Notably, corn prices increased by more than 1.5%, to 178 USD/ton, marking the second consecutive recovery session. The increase in corn prices mainly came from concerns about the supply situation when heavy rains affected planting activities.

In the US, heavy rains in the Midwest this week have helped improve conditions in the dry western regions, but have hampered planting in southern and eastern states, with some requiring replanting. Overall, the planting campaign remains favorable, with a balance of rain and sunshine forecast for next week. However, the continued rain has left the market cautious about the risks to the new crop.

In addition, the weekly report of the US Energy Information Administration (EIA) showed that ethanol production recovered by 1-2% and inventories decreased accordingly, amid high demand for ethanol. This helped maintain good production margins, thereby supporting corn prices as the majority of US corn in the 2024-2025 crop year is used for biofuel production.

Meanwhile, wheat prices jumped more than 3% yesterday, leading the rally across the board. In the US, the latest Crop Progress report showed that the percentage of winter wheat that was good/excellent was 52%, up slightly from last week but still below market expectations of 54%. Meanwhile, Russia’s largest grain-producing region, Rostov, declared a state of emergency as spring frosts damaged crops, raising concerns about production in the world’s largest wheat exporter.

Source: MXV

In addition, China is also facing severe hot and dry weather and drought in major wheat growing regions such as Henan , Shaanxi and Shanxi. The National Meteorological Center of China has warned that hot and dry winds could negatively affect wheat yield and quality, forcing the country to increase imports to ensure domestic supply. Unfavorable weather and production factors in key countries have strongly supported wheat prices, helping this commodity surge in the last trading session.

Regarding the metal market, according to MXV, the metal market continues to record clear differentiation. While the precious metal group increased strongly due to the need for shelter and concerns about supply shortage, the base metals were under pressure from weakening consumption demand.

At the close of the session, silver prices increased by 2.05% to 33.17 USD/ounce, while platinum jumped 4.92% to 1,055.4 USD/ounce, bringing the increase since the beginning of the year to 16%.

Source: MXV

MXV believes that Moody's downgrade of US debt has provided short-term support for precious metals such as silver. In the coming trading sessions, the market will focus again on US fiscal and public debt issues, making the market sentiment more cautious, thereby stimulating safe-haven demand for silver.

Notably, platinum is also strongly supported by the risk of supply shortage. The platinum market is forecast to continue to be in deficit for the full year of 2025, with a deficit of 966,000 ounces, mainly due to the lowest global supply in 5 years and a strong recovery in investment and jewelry demand.

On the other hand, base metal prices remained under pressure due to weakening consumption prospects amid global economic uncertainties. Iron ore prices continued to slide slightly by 0.05%, falling to $99.4/ton.

Source: https://baodaknong.vn/thi-truong-hang-hoa-21-5-luc-mua-chiem-uu-the-tren-thi-truong-253179.html