According to the The Mercantile Exchange Of VietNam (MXV), a broad uptrend was observed in the global raw material commodity markets during the trading session at the beginning of the week (August 19). Strong buying momentum pushed the MXV-Index up by 0.62% to 2,119 points. Notably, all 10 metal commodities simultaneously increased in price as recession fears eased, the USD weakened, and there were expectations of improved steel demand in China. Additionally, the agricultural market also experienced a positive start to the new week, with bargain hunting and positive U.S. export results helping corn escape its previous downward trend.

Metals Market Sees Broad Gains

Closing out the first trading session of the week, the metals market kicked off with a broad green spread across the price board. For precious metals, easing recession fears and the weakening of the USD helped silver and platinum maintain their upward momentum from last week's sessions. By the end of the day, silver prices rose by 1.58% to $29.3 per ounce, and platinum prices edged up to $962.9 per ounce.

Following positive data released by the U.S. last week, Goldman Sachs recently lowered the probability of a U.S. recession in the next 12 months from 25% to 20%, further easing recession concerns in the world's largest economy. Improved market sentiment supported the continued rise in silver and platinum prices in yesterday's session.

Moreover, the USD remains on a weakening trend amid expectations that the U.S. Federal Reserve (FED) will soon cut interest rates at next month’s meeting. FED policymakers Mary Daly and Austan Goolsbee emphasized the possibility of a policy pivot at the September meeting over the weekend, while the minutes from the July meeting, to be released early on August 22, are expected to highlight the FED's dovish stance.

As a result, the Dollar Index fell by 0.56% to 101.89 points, its lowest level in the last nine months. Lower investment costs created a favorable environment for precious metals to gain value in yesterday’s session.

For base metals, the weakening USD was also a key driver supporting price increases across the board. The most notable movement was the over 3% surge in LME aluminum prices, mainly supported by more optimistic consumption prospects in China.

Data from China's General Administration of Customs showed that China imported 260,000 tons of unwrought aluminum and primary aluminum in July, up 11.1% year-over-year. In the first seven months of the year, China imported a total of 2.3 million tons, a 60.6% increase compared to the same period last year.

In other developments, iron ore prices also saw a positive trading session, rebounding from a one-year low with a 2.85% increase to $94.63 per ton, ending a three-session losing streak. Expectations for improved steel demand and prices in China this week were the main factors supporting iron ore prices in yesterday’s session.

Corn Ends Two-Session Losing Streak

By the close of yesterday's session, except for a slight decline in CBOT wheat prices, the remaining agricultural commodities all saw price increases. Notably, the December corn contract broke a two-session losing streak, rising by 1.97%. Bargain hunting in the market and positive U.S. export results for the week were the main factors driving corn prices in yesterday’s session.

In the latest Export Inspections report, the U.S. Department of Agriculture (USDA) reported that U.S. corn shipment volumes for the week of August 9-15 reached 1.17 million tons, an increase from the previous week. Cumulative U.S. corn shipments from the start of the 2023-2024 marketing year to August 15 reached 50.1 million tons, significantly higher than the 36.18 million tons recorded during the same period last year. This indicates strong global demand for U.S. corn in the current marketing year, which has had a bullish impact on prices.

Additionally, a new heatwave is affecting the corn crop during its final development stage in the U.S. Concerns over the potential impact of weather on crop yields also contributed to supporting corn prices.

On the domestic market, as recorded on the morning of August 19, prices of imported South American corn at ports in Vietnam slightly decreased compared to the beginning of last week. At Cai Lan port, South American corn with an October delivery term was priced between 6,250 - 6,300 VND/kg. For deliveries in the last two months of the year, the offered price ranged from 6,350 - 6,400 VND/kg. Meanwhile, the offered price of imported corn at Vung Tau port was recorded 100 VND/kg lower than that at Cai Lan port.

Meanwhile, the December wheat contract saw a choppy session and closed with a slight decline, contrary to the general market trend. The negative U.S. export results, along with fierce price competition from Russian wheat in the global export market, exerted significant downward pressure on prices.

Source: MXV