Commodity markets mixed with silver and coffee

Commodity markets were mixed, with silver soaring to a new high, in contrast to a sharp fall in coffee. Money flowing into the metal helped keep silver prices on the rise.

Silver prices take center stage as metal leads markets

The November 12 session ended with a mixed picture in the global commodity market. While the industrial raw materials group weakened sharply, the price of silver increased impressively and set a new record of 53.46 USD/ounce. The consecutive increase in many sessions helped the price of silver become the focus of investors' attention, attracting money to the precious metal in the context of increasing economic instability.

The MXV-Index fell 0.4% to 2,365 points, mainly due to strong selling pressure at the end of the session. However, the upward trend in silver prices shows that the precious metal still holds a prominent position compared to the agricultural and industrial commodity groups.

Coffee falls sharply as US tax policy impacts entire market

Among industrial raw materials, coffee was the item with the sharpest decline. Arabica prices fell more than 4.5% to 8,898 USD/ton, while Robusta fell nearly 5.5% to 4,366 USD/ton. This development caused the industrial sector to sink deep into the red.

The news from US President Donald Trump that he would reduce coffee import taxes for some countries put a lot of pressure on prices. Previously, he mentioned the possibility of tax exemption for coffee imported from Vietnam - the world's No. 1 source of Robusta. The double impact of tax policy and recovering supply put coffee under strong pressure, completely opposite to the upward trend of silver prices.

StoneX forecasts Brazil’s coffee production in 2026–2027 at 70.7 million bags, up 13.5% from the previous year, further pushing down prices. The strongest growth will come from Arabica, while Robusta will decline slightly. However, uncertain weather conditions mean this figure remains risky.

In Vietnam, coffee prices are trading stable at around VND118,000–119,000/kg. Harvesting has accelerated in the Central Highlands but is not enough to offset the strong fluctuations in the world market.

Silver prices rise sharply thanks to the US including silver in the group of essential minerals

One of the biggest drivers of silver’s price rise is the US’s inclusion of silver in the list of critical minerals. This has led to continued strong investment demand for physical silver in the US – which accounts for 35% of the world’s – and the US is also the second-largest consumer of industrial silver, behind only China.

About 65% of US silver demand is imported, so the possibility of imposing import tariffs on silver raises concerns about supply shortages. The direct impact is that international silver prices have continuously broken out in recent sessions.

Silver demand is driven by the electrical and electronics and capital investment sectors, each accounting for about 30% of total consumption, according to the USGS. Solar panel production, which accounts for about 12% of demand, is also helping to maintain the upward momentum of silver prices.

Expectations of Fed rate cuts continue to support silver prices

Signs of a strong US job market are bolstering expectations that the Fed will cut interest rates for the third time this year. The latest report from ADP shows that private businesses lost an average of 11,250 jobs per week in the four weeks ended October 25 – the biggest decline since late August.

If interest rates fall, the strength of the US dollar could weaken and support silver prices further. A weaker US dollar makes dollar-denominated assets, especially silver, more attractive to investors holding other currencies. Low interest rates also create conditions for industrial expansion, which boosts demand for silver.

Silver prices forecast to continue to hit new highs but demand risks remain

A survey by the London Precious Metals Market Association (LBMA) shows that silver prices could rise to $59 an ounce in the next 12 months. Since the beginning of the year, silver prices have increased by 80%, far exceeding gold and platinum.

However, the strong increase could also cause the photovoltaic industry to cut down on silver usage to save costs, especially when silver accounts for about 15% of the cost of producing solar panels. This is a factor that could cause silver prices to fluctuate unpredictably in the coming time.

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Source: https://baonghean.vn/thi-truong-hang-hoa-bien-dong-trai-chieu-voi-bac-va-ca-phe-10311256.html