COMMODITY MARKET: Coffee leads the increase, MXV-Index reaches 8-month peak

(Chinhphu.vn) - After two positive sessions, the MXV-Index closed on November 3 up nearly 1% to 2,351 points - the highest level since late February. The group of industrial materials, especially the two coffee products, played a leading role and created an important driving force for the entire market.

Supply concerns support coffee prices

Closing yesterday's trading session, the industrial raw material market witnessed overwhelming buying power with 7/9 items increasing in price simultaneously. Notably, the price of Arabica coffee increased by more than 3.7% to 8,965 USD/ton while the price of Robusta coffee also increased by more than 3.3% to 4,693 USD/ton.

According to the Vietnam Commodity Exchange (MXV), extreme weather in the world's two leading coffee producing countries, Vietnam and Brazil, is raising concerns about crop damage, pushing coffee prices up sharply in the first trading session of the week.

In Vietnam, the Central Highlands region - the country's main coffee growing region - is expected to be directly affected by Typhoon Kalmaegi, which could reach level 12-13 when it makes landfall. Previously, prolonged heavy rains have also caused harvest progress in the provinces in this region to stagnate and raised concerns that the 2025-2026 crop output will decrease sharply.

In Brazil, the world's largest coffee producer, dry weather continues to hurt yields.

Meanwhile, global coffee supplies are tightening, with some international sources saying that US roasters have almost run out of stockpiles. This makes the removal of the 50% tariff on Brazilian coffee more urgent. Arabica coffee inventories monitored by ICE have fallen to their lowest level in nearly two years, to 431,481 bags as of early this week. Robusta inventories have also dropped sharply, to just 6,053 lots - the lowest level in more than three months.

World oil prices increased for the fourth consecutive session

Not outside the general market trend, the energy group yesterday also recorded green covering all 5 commodities in the group. Notably, the market continued to witness the slight recovery of world oil prices extending to the 4th consecutive session despite the decision to continue increasing production in December from the Organization of the Petroleum Exporting Countries and its allies (OPEC+).

Closing, the prices of both crude oil products recorded a slight increase of 0.11%, with WTI oil price stopping at 61.05 USD/barrel, while Brent oil price was traded at 64.84 USD/barrel.

Last weekend, OPEC+ officially confirmed that it would continue to increase production by 137,000 barrels/day in December. This is the third consecutive increase after October and November and is part of the roadmap to completely remove the 1.65 million barrels/day production cut that has been applied since April 2023. However, analysts say this increase is still quite modest and unlikely to create significant pressure on world oil prices.

In other related developments, natural gas prices in the US also extended their gains to the fourth consecutive session. At the close, natural gas prices reached 4.27 USD/MMBtu, up 3.44%. Previously, in the last trading session of October, natural gas prices surpassed the 4 USD/MMBtu mark for the first time since early March, when expectations for heating demand increased sharply in the context of approaching winter in countries in the Northern Hemisphere.

Source: https://baochinhphu.vn/thi-truong-hang-hoa-ca-phe-dan-dat-da-tang-mxv-index-ve-dinh-8-thang-102251104103808861.htm