World raw material prices fell sharply

The agricultural and industrial raw materials group suffered the strongest selling pressure, pulling the MXV-Index down 0.73% to 2,278 points, hitting its lowest level in two weeks.

Soybean prices fall sharply on positive supply outlook

At the end of the trading week of June 17-23, soybean prices fell nearly 3% to $411.53/ton, extending the decline to the fourth consecutive week, reaching the lowest level since November 2020. Positive signals surrounding the supply outlook in Brazil and the US caused sellers to dominate the market last week.

Agricultural product price list

In its Crop Progress report, the USDA said soybeans are good/excellent at 70% of the area, down slightly from last week but well above the 54% level last year. Soybean quality remains high this year, and the current decline has not had much of an impact on yield potential. Rain is forecast for the central US, with the heaviest rainfall in the northwest Midwest over the next two weeks, according to the Commodity Weather Group. This should provide relief to drought-stricken areas, putting pressure on the market.

Brazil is ramping up exports to make room for its second corn crop, which is currently harvesting at its fastest pace in a decade. The National Association of Cereal Exporters (ANEC) raised its June soybean export forecast to 14.88 million tonnes, up about 1 million tonnes from last week and the highest level for the June period. This is also 1 million tonnes higher than the same period last year and 1.5 million tonnes higher than May. According to the Mato Grosso Agricultural Economics Institute (Imea), farmers in the state have sold 77.9% of their expected 2023-24 crop, up from 72.1% at the same time last year. This factor also boosted soybean selling last week.

Iron ore prices fall for fourth consecutive week due to sluggish consumption

The metal market was mixed last week. For precious metals, silver and platinum prices both rose again amid market optimism about the US Federal Reserve's (FED) interest rate cut expectations. Platinum prices jumped nearly 4% to $996.40 an ounce. Silver prices also rose 0.48% to $29.61 an ounce.

Metal price list

According to data from the US Department of Commerce, US retail sales increased by only 0.1% in May, lower than the forecast of 0.3% increase, reflecting the slowing of consumer spending by Americans. Meanwhile, the labor market cooled as the number of people applying for unemployment benefits was higher than forecast. This series of data shows that the world's largest economy is showing signs of slowing down after a period of good growth at the beginning of the year. This has indirectly promoted expectations that the FED will need to lower interest rates soon to avoid a "hard landing" of the economy, and the price of precious metals has also benefited.

Among base metals, iron ore fell the most, falling 2.2% to $105.1 a tonne, marking its fourth consecutive weekly decline. Iron ore prices continued to face pressure as the market grew concerned about weakening demand in China, the world's largest steel consumer. Data showed that iron ore inventories at major Chinese ports had risen past 147 million tonnes, up about 27% from the beginning of the year and the highest level in more than two years.

Moreover, concerns that the country will continue to implement its plan to limit steel output have put further pressure on prices of raw materials such as iron ore. Last week, the government of Fujian province, one of China's major steel-producing regions, discussed with local steel mills about output restrictions this year.

In other developments, COMEX copper prices also fell 1.18% to $9,792.92/ton. Copper prices are under pressure again as the market has seen some more positive signs about supply, helping to ease concerns about copper shortages.

Specifically, mining giant Vale said that in 2026, its copper production could increase to 394,000 to 431,000 tonnes, about 5% higher than estimated in December last year. In addition, according to the June supply-demand report released by the International Copper Study Group (ICSG), the global refined copper market had a surplus of 13,000 tonnes in April.

Prices of some other goods

Energy price list

Industrial raw material price list

Source: https://congthuong.vn/thi-truong-hang-hoa-hom-nay-ngay-2462024-gia-hang-hoa-nguyen-lieu-the-gioi-giam-manh-327814.html