Commodity Market: Crude Oil Price Reverses, Coffee Breaks Out

5 items in the energy commodity market recovering. Source: MXV

However, the decline was narrowed thanks to the simultaneous recovery of all 5 energy products. According to MXV, the market yesterday witnessed green covering the entire energy market.

The prospect of the Federal Open Market Committee (FOMC) of the US Federal Reserve (FED) deciding to cut interest rates in September is becoming clearer. This expectation has become the main factor driving the increase of about 2% in crude oil prices in yesterday's trading session.

Specifically, WTI oil price climbed to 63.96 USD/barrel, corresponding to an increase of up to 2.09%. Brent oil price also recorded an increase of about 1.84%, closing the session at 66.84 USD/barrel, the highest level in nearly 2 weeks.

Selling pressure dominates the market of industrial raw materials. Source: MXV

Closing yesterday's trading session, selling pressure continued to dominate most industrial raw materials. However, there were still bright spots in the two commodities of coffee and white sugar as these commodities maintained green in yesterday's session.

Of which, Arabica coffee price jumped more than 2% to 7,198 USD/ton, while Robusta skyrocketed more than 3% to 3,814 USD/ton.

According to MXV, the price increase is due to growing concerns about supply chain disruptions, after the US officially imposed a 50% tax on coffee imported from Brazil - the largest coffee supplier to the US market.

In the domestic market, the trend is in the same direction as the world price. This morning, coffee prices in the Central Highlands provinces increased sharply compared to yesterday.

Currently, the average coffee purchase price in key production areas is at 111,400 VND/kg. Specifically, today's coffee price in Dak Lak is 111,500 VND/kg, in Lam Dong is 111,000 VND/kg, in Gia Lai is 111,200 VND/kg and in Dak Nong is 111,600 VND/kg.

Source: https://hanoimoi.vn/thi-truong-hang-hoa-gia-dau-tho-dao-chieu-ca-phe-but-pha-712696.html