COMMODITY MARKET: Closing the trading session in green

(Chinhphu.vn) - After four consecutive sessions of decline, the global commodity market closed the trading session on September 23 in the green. The MXV-Index inched up 0.6% to 2,232 points, mainly thanks to the pull from the energy market. In contrast, coffee remained under pressure due to unpredictable developments in trade policy and favorable weather for the crop, which only made the prospect of oversupply more evident.

Natural gas and crude oil prices recover together

According to MXV, yesterday's energy market witnessed overwhelming buying power when all 5 products in the group increased sharply.

Specifically, Brent oil price climbed to 67.63 USD/barrel, up 1.59%; while WTI oil price also reached 63.41 USD/barrel, corresponding to an increase of up to 1.81%. World oil prices ended a series of 5 consecutive sessions of decline in yesterday's trading session, when concerns about a sharp increase in supply temporarily subsided.

Yesterday’s highlight was the continued disruption of crude oil exports from the autonomous Kurdish region in northern Iraq as two key companies in the region, Norway’s DNO and Britain’s Genel, demanded debt guarantees. The Kurdish autonomous region government currently owes producers around $1 billion, of which DNO’s overdue debt is estimated to be around $300 million.

DNO Executive Chairman Bijan Mossavar-Rahmani said he had proposed “easy solutions that can be agreed upon quickly” but did not provide further details. Earlier, some news sites reported an agreement between the Iraqi federal government, the autonomous Kurdish region and oil companies there to restart oil exports from northern Iraq to Türkiye.

The deal was expected to add 230,000 barrels per day to OPEC's second-largest oil producer's supply, putting pressure on global oil prices. However, the market's reaction to the news of the deal being disrupted was hasty, as commented by Phil Flynn, senior analyst at Price Futures Group: "The market sold off immediately after reports of a deal in Kurdistan, but the fact that there is no deal means that oil is not coming back to the market." This has fueled the oil price rally, especially in the context of geopolitical tensions that still pose the risk of supply disruption from Russia and the Middle East.

In another development, the natural gas market in the US recorded a recovery after 5 consecutive sessions of decline. At the end of the trading session, the natural gas contract for November delivery on the NYMEX floor increased by 1.39%, to 3.14 USD/MMBtu. The return of hot weather forecasts has led to expectations about the demand for electricity for cooling of the American people as well as the input fuel demand of power plants here.

Coffee prices fell sharply, Arabica fell nearly 5%

Closing yesterday's trading session, the industrial raw materials market recorded overwhelming selling pressure, especially for two coffee products. Specifically, Arabica coffee prices lost up to 4.7% to 7,719 USD/ton while Robusta coffee prices also decreased nearly 3.8% to 4,118 USD/ton.

According to MXV, the main reason for the sharp decline in coffee prices yesterday was due to unpredictable fluctuations in tariffs and positive weather developments. Although the US Federal Reserve (Fed) reduced interest rates by 0.25%, money continued to move away from the commodity market to seek safe haven assets such as gold and silver, creating downward pressure on prices of many commodities, including coffee.

In addition, the trade outlook between the US and Brazil is showing positive signs when US President Donald Trump announced that he will meet with Brazilian President Lula da Silva next week, thereby bringing with it the expectation that Brazilian coffee products may have their taxes relaxed.

At the same time, favorable weather also supports the growth of coffee plants.

Source: https://baochinhphu.vn/thi-truong-hang-hoa-khep-phien-giao-dich-trong-sac-xanh-102250924092636667.htm