 |
| Farmers harvest coffee. Photo: AFP/TTXVN |
Coffee continued to dominate the market yesterday, as Arabica prices jumped 5.24% to their highest level since late April, according to the Vietnam Commodity Exchange (MXV).
Besides, platinum also recorded its fourth consecutive increase, supported by both macro factors and supply-demand signals.
Closing, the MXV-Index increased by more than 1% to 2,283 points, marking a series of 6 consecutive positive sessions.
Closing yesterday's trading session, the industrial raw materials market recorded overwhelming buying power on most key commodities.
Notably, coffee prices continued to experience an explosive trading session when both commodities simultaneously increased sharply by over 5.2%. At the end of the session, Arabica coffee prices remained at 9,207 USD/ton, while Robusta coffee also returned to the 4,842 USD/ton range.
The prolonged tariff tension between the US and Brazil since July has caused coffee import and export activities between the two countries to stagnate for more than two consecutive months, thereby directly putting pressure on the supply chain and coffee inventory on ICE.
The latest report from Conab shows that Brazilian coffee exports to the US in August decreased by 46% compared to the same period last year. In the context of struggling to maintain stable inventories, coffee roasters in the US are forced to increase purchases on the ICE exchange to meet short-term demand.
This has also caused coffee inventories on the ICE exchange to fall sharply, with updated data on September 15 showing that Arabica coffee inventories fell by 2,888 bags in just one day, down to 666,337 bags - the lowest level in more than a year.
In addition, the sharp increase in coffee prices was also driven by active buying power from investment funds.
In the Arabica coffee market, the Managed Money Fund group increased its net long position by 12.86% in the trading week ending September 9, marking the fourth consecutive week of increase and bringing the total net long position to 36,628 lots. The Index Fund (long term) also increased its net long position by 0.35% to 40,166 lots.
On the other hand, the latest Commitment to Trade report from the Robusta coffee market shows that the Short-term Money Management Fund group slightly reduced its net buying position by 1.33% in the week ending September 9, to 11,346 lots, equivalent to 1,891,000 bags.
This position is expected to be little volatile in the coming trading sessions, mainly moving sideways despite market volatility.
In the domestic market, as recorded this morning, coffee prices fluctuated between 122,000 and 122,700 VND/kg, an increase of 2,200 VND compared to yesterday. According to Agromonitor, the purchase of new crop coffee (December) has begun to appear.
Farmers and dealers are also taking advantage of the opportunity to sell old crop inventories, in the context of coffee prices continuously recovering in recent days. Notably, foreign customers have begun to survey the demand for new crop purchases, but the export market is still quite quiet.
Currently, the demand for purchasing new crops has formed, but the amount of goods ready for long-term delivery (December) is still limited. Some export enterprises and companies offer to buy new crop coffee at around 114,000-115,000 VND/kg, however, the strong market fluctuations cause the price to fluctuate quite a lot.
Regarding domestic old-crop goods, many businesses have purchased almost enough to meet the demand for previously signed contracts; the remaining amount is not much, so collecting goods is difficult, especially from the farmers. Inventory at agents is low, sales are small.
 |
| Arabica coffee in Medan, North Sumatra, Indonesia. Photo: AFP/TTXVN |
Not outside the general market trend, the metal group also recorded overwhelming buying power when 7 out of 10 items increased in price simultaneously. Notably, platinum continued to maintain its upward momentum for the fourth consecutive session when it increased by 0.39% to 1,417.2 USD/ounce.
In yesterday's trading session, the USD index (DXY) reversed and decreased by 0.25% to 97.3 points, thereby making USD-priced commodities such as platinum more attractive to investors holding other currencies, thereby stimulating buying power.
Platinum prices also received strong support from concerns about a prolonged supply shortage. The World Platinum Investment Council (WPIC)'s second quarter report showed that global supply is decreasing amid a market balance that continues to be in deficit for the third consecutive year, reinforcing expectations that platinum prices will continue to rise in the coming time.
In particular, in the second quarter, total global platinum supply fell 4% compared to the same period last year, mainly due to a decline in mine production of up to 8%, equivalent to about 123,000 ounces. This decrease was far more than offset by recycled supply, which increased by only 12%, equivalent to 44,000 ounces.
On the consumption side, jewelry demand has surged 32% year-on-year to 668,000 ounces in 2024, largely offsetting the decline in sectors such as automotive and industrial.
Overall, the market balance recorded a slight deficit of around 11,000 ounces in Q2 and is expected to be in a deficit of around 850,000 ounces for the full year 2025.
On the other hand, in the world's leading platinum consuming market, China, economic data that did not meet expectations is sending signals of an economic slowdown, thereby threatening to reduce demand for platinum in the industrial sector, curbing the price increase of this metal.
According to China's National Bureau of Statistics (NBS), although industrial output in August increased 5.2% year-on-year, this was also the lowest increase recorded since August 2024.
Source: VNA
Source: https://baodongnai.com.vn/kinh-te/202509/gia-tang-thi-truong-ca-phe-bung-no-len-muc-cao-nhat-ke-tu-cuoi-thang-4-a5c10f7/
Comment (0)