Notably, in the industrial raw material market, the prices of two coffee commodities recovered simultaneously in the context of a sharp decline in coffee exports from Brazil. Meanwhile, optimism continued to dominate the energy market following the provisional trade agreement between the US and China.
Coffee market recovers, sugar prices increase sharply
At the end of yesterday's trading session, the industrial raw material market recorded positive developments when 9/10 items increased in price. In particular, world sugar prices increased sharply on both major exchanges. Sugar price 11 on the ICE US exchange increased by 2.94% to 401 USD/ton, while sugar price on the ICE EU exchange also increased by 2.99% to 509.8 USD/ton. The increase in sugar prices was recorded in the context of global supply continuing to be under pressure.
According to UNICA's report, sugarcane crushing output in Central-South Brazil in April reached only 34.25 million tons, down 33% year-on-year, leading to a 39% drop in sugar output to 1.58 million tons due to heavy rains. Sugar exports in the month decreased by 17.7%, and the cumulative decrease in the first four months of the year was 32.3%, raising concerns about supply shortages and pushing sugar prices up sharply.
Meanwhile, the USDA forecasts US sugar production in 2025-26 at 8.42 million tonnes, down slightly from the previous crop year. Beet sugar is down, but sugarcane is up. Imports are expected to fall to 2.5 million tonnes, while consumption remains unchanged at 12.25 million tonnes. Ending inventories are expected to fall sharply to 1.4 million tonnes, down from 2 million tonnes last year.
In the coffee market, prices of two coffee products recovered simultaneously yesterday. Arabica coffee prices increased by 0.91% to 8,297 USD/ton, while Robusta coffee prices increased by 1.52% to 5,129 USD/ton.
According to the latest report from the Brazilian Coffee Export Council (Cecafé), Brazil's coffee exports fell 27.7% in April compared to April 2024, reaching 3.09 million bags (60 kg each). However, export revenue increased sharply by 41.8% over the same period, reaching 1.34 billion USD. In the first 4 months of the year, coffee exports decreased by 15.5% compared to the same period, but the turnover reached a record high of 5.23 billion USD.
Cecafé President Márcio Ferreira said the drop in exports was justified given the mid-season period, especially after Brazil exported a record amount in 2024. He added that exports would slow in the next two months, until the Arabica crop begins. Brazil is likely to harvest its largest Robusta crop in history, while production in Vietnam and Indonesia is also expected to grow compared to last year.
In addition, dry and warm weather is forecast to dominate Brazil's coffee growing regions over the next 10 days, which could affect the harvest progress and quality of the new crop.
Optimism pushes oil prices up
Optimism continued to prevail in the energy market following the interim trade deal between the US and China. This supported a sharp increase in world oil prices yesterday.
At the end of the trading session, Brent oil price stopped at 66.63 USD/barrel, up 2.57%. Similarly, WTI oil price also recorded an increase of up to 2.78%, up to 63.67 USD/barrel. These are the two highest price levels of these two commodities since the end of April.
Overall, the optimistic sentiment in the market was mainly reinforced by the agreement reached on May 10 between the US and China. Although it is only a temporary agreement within 90 days, this move is considered a positive signal, especially for US importers, when the demand for imported goods from China is forecast to increase sharply in the next 3 months, leading to an increase in demand for crude oil and fuel.
In addition, the latest inflation figures in the US also contributed to reinforcing a more positive macroeconomic outlook in the world's two largest oil consuming countries.
In addition, the US government's new sanctions targeting Iranian crude oil also boosted oil prices.
Source: https://baolangson.vn/thi-truong-hang-hoa-khoi-sac-mxv-index-vuot-moc-2-200-5047050.html
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