Commodity market: Crude oil prices recover, coffee falls nearly 5%

The MXV-Index edged up 0.6% to 2,232 points, mainly thanks to the pull from the energy market.

The energy market is "bright green" with 5 commodities increasing in price. Source: MXV

According to records from the Vietnam Commodity Exchange (MXV), the energy market witnessed overwhelming buying power when all 5 commodities in the group increased sharply.

Specifically, Brent oil price climbed to 67.63 USD/barrel, up 1.59%; while WTI oil price also reached 63.41 USD/barrel, corresponding to an increase of up to 1.81%.

World oil prices ended a five-session decline as concerns about surging supply temporarily eased.

Arabica coffee prices fell by 4.7%. Source: MXV

The industrial raw material market recorded selling pressure on many commodities, especially for two coffee commodities. Specifically, the price of Arabica coffee lost 4.7% to 7,719 USD/ton while the price of Robusta coffee also decreased by nearly 3.8% to 4,118 USD/ton.

According to MXV, the main reason for the sharp drop in coffee prices yesterday was due to unpredictable fluctuations in tariffs and positive weather developments.

Although the US Federal Reserve (Fed) has cut interest rates by 0.25%, money continues to move away from the commodity market to seek safe haven assets such as gold and silver, creating downward pressure on prices of many commodities, including coffee.

In addition, the trade outlook between the US and Brazil is showing positive signs while favorable weather is also supporting the development of coffee plants.

In Vietnam, rainfall is forecast to be higher than average in major coffee growing regions next week, creating favorable conditions for coffee berry development.

In the domestic market, end-of-season coffee transactions are sparse due to limited old inventory. Most agents and farmers tend to hold on to their products, waiting for prices to rise back above VND120,000/kg before considering selling.

Source: https://hanoimoi.vn/thi-truong-hang-hoa-gia-dau-tho-phuc-hoi-ca-phe-giam-gan-5-717129.html