According to the Vietnam Commodity Exchange (MXV), at the close of trading on the first day of August, selling pressure returned, dominating the world raw material market, causing the MXV-Index to fall 1.29% to 2,114 points. All 9 industrial raw material products decreased in price, of which cocoa prices plunged more than 6.5%, sugar fell more than 2%. After the previous uptrend, red continued to appear in the metal market when 7 products' prices weakened.

MXV-Index

Cocoa prices lose more than 6.5%

At the end of yesterday's session (August 1), cocoa prices led the decline in the industrial raw material group when they fell 6.55% to a one-month low of 7,562 USD/ton. The market focused on signs of improved supply in the world's leading cocoa producing and exporting countries.

The La Nina weather pattern replacing El Nino has brought more rains to Ivory Coast and Ghana, two countries that produce over 60% of the world's cocoa, helping improve soil moisture and boost cocoa yields.

In Ivory Coast, sunny spells mixed with light rains late last week boosted the main cocoa season (October to March). Cocoa growers also expect significant harvests in September and a gradual increase from October to December.

Industrial raw material price list

In addition, cocoa exports in June in Nigeria increased by 18% compared to the same period last year, also contributing to improving current market supply.

Moreover, weaker global demand for cocoa is also weighing on prices. BMI, a unit of Fitch Solutions, said global cocoa grinding output, a measure of demand, fell 4.2% in the second quarter from the first.

Sugar prices closed down nearly 2.32%, marking the second consecutive session of decline, following a positive crop signal from India, the world’s second-largest sugar producer. Sugarcane fields in India will have better growing conditions in the coming time as the country received 9% more rainfall than average in July.

In addition, the prices of two coffee products also decreased by 0.85% for Arabica and 0.84% ​​for Robusta due to the increase in USD/BRL exchange rate, Brazil's coffee export activities were more active than last year, and coffee inventories in Europe recovered.

Metal market “loses momentum”, prices go down

After the previous session of positive trading, red returned to the metal price chart when 7 items reversed and decreased in price. Regarding precious metals, despite the support of macro factors, silver and platinum prices turned down more than 1%, closing the session at 28.48 USD/ounce and 970.5 USD/ounce, respectively.

Silver and platinum prices fell yesterday, mainly due to profit-taking by investors after a sharp increase in the previous session. Near the end of the session, the prices of both commodities recovered as the general market sentiment remained optimistic about the US Federal Reserve's interest rate outlook, especially after the July meeting announcement.

Metal price list

The Fed's dovish message at its recent meeting, combined with Fed Chairman Jerome Powell's signal of a rate cut in September, has made the market increasingly confident that the Fed will cut rates at its September meeting. This optimism in the market will continue to be maintained, at least until the US Department of Labor releases the non-farm payroll report tonight.

For base metals, COMEX copper prices fell more than 2%, closing at $9,000/ton, the lowest level in the past 4 months. Poor consumption prospects continued to be a factor putting pressure on copper prices in yesterday's session.

Copper prices may fall in the second half of this year due to weak demand and steady supply growth, according to research firm Antaike. Specifically, refined copper demand growth in China, the world's largest copper consumer, is forecast to slow to 2.5% in 2024 from 5.3% last year due to a weakening construction sector. On the supply side, the global refined copper surplus is expected to be 300,000 tonnes in 2024, higher than last year.

Prices of some other agricultural products

Agricultural product price list

Energy price list