Commodity Markets: Oil and Coffee Prices Break Out

According to the Vietnam Commodity Exchange (MXV), the MXV-Index increased by nearly 1% to 2,201 points for the second consecutive session with overwhelming green, in which oil and coffee prices broke out.

Energy commodity market covered in green. Source: MXV

According to MXV, yesterday's session witnessed a strong increase in the energy market when all 5 commodities increased sharply.

Brent crude oil prices climbed to their highest level in more than two weeks, stopping at 67.67 USD/barrel, an increase of about 1.24%. Similarly, WTI crude oil prices also recorded an increase of about 1.29%, reaching 63.52 USD/barrel, the highest level in the past 7 days.

Oil prices continue to be supported by steady demand, as evidenced by two weekly reports from the American Petroleum Institute (API) and the US Energy Information Administration (EIA). Investors are also awaiting a decision on the possibility of a rate cut by the US Federal Reserve (FED).

Economic indicators released yesterday in the US, the European Union (EU) and India also showed relatively positive signals, thereby contributing to supporting economic growth and energy demand.

The market for industrial raw materials has many items increasing in price. Source: MXV

In the industrial raw material group, Arabica coffee prices jumped more than 4.1% to 8,272 USD/ton - marking the 7th consecutive session of increase, while Robusta prices also had a third session of increase with nearly 2.5% to 4,758 USD/ton.

According to MXV, the coffee market is being hit by a double whammy of tariff concerns and tight supplies in Brazil.

Concerns about a worsening supply shortage continued to push coffee prices higher in recent sessions.

In Vietnam, the harvest is still more than a month away and it will be at least two months before the first shipments are available to the market, while inventories currently remain low.

Recorded this morning, August 22, the purchase price of green coffee beans in the Central Highlands and Southern provinces fluctuated between 122,600 - 123,200 VND/kg, a slight increase compared to yesterday.

Source: https://hanoimoi.vn/thi-truong-hang-hoa-gia-dau-va-ca-phe-but-pha-713570.html