Commodity market fluctuates in the first trading session of the week

Commodity market today September 13: Investment cash flows strongly into energy and metal markets Commodity market today September 16: World commodity markets experience a vibrant trading week

Many commodities in the energy and metal groups increased in price while red returned to the agricultural and industrial raw materials markets. However, buying power continued to dominate, pushing the MXV-Index up 0.43% to 2,122 points.

Thị trường hàng hóa hôm nay 17/9: Thị trường hàng hóa diễn biến giằng co trong phiên giao dịch đầu tuần

MXV-Index

Oil prices recover to above 70 USD/barrel

At the end of the first trading day of the week, September 15, oil prices recovered as the market focused on assessing the interest rate cut of the US Federal Reserve (Fed) in the upcoming meeting. At the end of the session, WTI oil prices increased by 2.1% to 70.09 USD/barrel. Brent oil increased by 1.59% to 72.75 USD/barrel.

Energy price list

Oil markets remain cautious ahead of the Fed’s policy meeting (September 17-18). However, prices are still supported by supply concerns as oil production in the Gulf of Mexico remains disrupted.

Traders are increasingly betting on a 50 basis point rate cut from the previously expected 25 basis points. While the Fed rate cut is all but certain, the market’s expectation of a 50 basis point cut would be a major boost to oil prices. Lower interest rates typically reduce borrowing costs, which can boost economic activity and boost oil demand. However, experts have warned that a 50 basis point cut could signal weakness in the US economy, and that concern could limit the market’s gains.

Meanwhile, oil production in the US Gulf of Mexico remains disrupted following Hurricane Francine. About 20% of the region’s total crude oil production remains suspended, while cumulative offshore production losses have reached 2.16 million barrels of crude oil. Workers at 37 rigs, or about 10% of the total operating rigs in the Gulf of Mexico, remain evacuated.

On the other hand, weaker economic data from China weighed on markets, with the outlook for long-term low growth in the world’s second-largest economy adding to concerns about global oil demand. Refinery output also fell for a fifth month as weak fuel demand and export margins limited production. A total of 1.85 million barrels per day were added to the country’s stockpiles, the most since June 2023.

Soybean prices continued to fluctuate in the first session of the week.

November soybean futures were mixed in the first trading session of the week as demand for US soybeans had mixed effects on prices. Closing yesterday’s session, soybeans recorded a slight decrease of 0.17% to 369 USD/ton while the prices of two finished soybean products increased slightly by 0.28% for soybean meal and 0.46% for soybean oil.

Agricultural product price list

In its Export Inspections report last night, the US Department of Agriculture (USDA) said that the volume of soybeans exported by the country in the week ending September 12 was nearly 401,290 tons, up about 10% from a week ago. In addition, USDA also said that exporters sold a large order of 132,000 tons of soybeans, expected to be delivered in the 2024-2025 crop year, to an unnamed country. The above reports show that international demand for US soybeans has recovered and supported prices of this commodity.

However, a sharp decline in domestic demand for soybeans in August put a lot of pressure on prices. Specifically, the National Oilseed Processors Association (NOPA) said that the US soybean oil crush volume in August was 158,000 million bushels of soybeans, down 13.6% from July and 2.1% lower than the same period last year. This is also the lowest monthly soybean crush volume recorded since September 2021.

On the other hand, the prices of two finished soybean products both closed in the green, mainly due to the impact of the NOPA report. Soybean meal prices increased slightly by 0.28%, while soybean oil prices increased by 0.46%. The sharp decline in US soybean oil crushing volume in August may reduce soybean meal supplies in the short term, which supported prices. Meanwhile, soybean oil inventories held by NOPA members reached 516.3 million tons at the end of August, the lowest level in the past 10 months.

Prices of some other goods