Commodity Market: Platinum Leads Overall Gains

Money flows excitedly into commodities, platinum leads the overall market rally as it hits a 14-year high.

MXV-Index increased more than 0.5% to 2,263 points. Source: MXV

In the trading session on October 16, the world commodity market continued to flourish, the widespread buying power and positive sentiment of investors helped the MXV-Index increase by more than 0.5%, to 2,263 points.

Metal prices improved with 7 items going up. Source: MXV

The metal market continued to flourish with 7/10 commodities increasing in price. The focus was on platinum, when futures prices increased by nearly 4%, to 1,755 USD/ounce - the highest level since 2011.

According to the Vietnam Commodity Exchange (MXV), the strong increase in platinum mainly comes from the decrease in supply in South Africa, the country that accounts for 70% of global production, due to rising energy costs, power shortages and declining profits, causing production in August to decrease by 3% compared to the same period, and in the second quarter it decreased by 6% compared to the same period. The market is expected to have a deficit of about 850,000 ounces this year - the third consecutive year of deficit.

At the same time, the USD weakened 0.46% to 98.34 points, along with expectations of the FED cutting interest rates, which stimulated capital flows into precious metals. In addition, the announcement of the China Nonferrous Metals Corporation (CNMC) to build three strategic reserves, including platinum, further increased price expectations.

The industrial raw materials trading market is also bustling. Source: MXV

The industrial raw material group was also vibrant, with cocoa prices being the focus, increasing by 3.1% to $5,991/ton, becoming one of the strongest growing commodities.

MXV said the cocoa rally was driven by signs of recovering demand in the third quarter. In North America, grinding output reached 112,780 tonnes, up 3.22%, ending two consecutive quarters of decline; while in Europe, although still weak, the decline was only 4.8%, lower than forecast.

In terms of supply, cocoa arrivals in Ivory Coast, the world’s largest producer, remain low. According to Reuters estimates, in the week ending October 12, cocoa arrivals reached only 48,000 tonnes, down sharply from 87,000 tonnes in the same period last year and significantly lower than the five-year average of 67,600 tonnes.

In addition, abundant rain in Ivory Coast has helped plants grow well, but if prolonged, it will potentially reduce grain quality – a factor that could maintain the high price trend in the coming weeks.

Source: https://hanoimoi.vn/thi-truong-hang-hoa-bach-kim-dan-dat-da-tang-toan-thi-truong-719961.html