The Mercantile Exchange Of VietNam (MXV) reported that the MXV-Index saw a slight decline during the trading session on August 20, closing at 2,119 points. While prices for several agricultural, metal, and industrial raw materials rebounded and increased, the entire energy market remained in the red. The fluctuating movements during yesterday's trading session indicate that investor sentiment remains quite cautious.

Energy Market Still in Decline

Oil prices continued to plunge, nearing a two-week low due to eased concerns about supply in the Middle East after Israel accepted a proposal to resolve disagreements and prevent a ceasefire in Gaza. Additionally, the weakening economy in China continues to put pressure on fuel demand.

By the end of the session, WTI oil recorded its third consecutive decline, down 0.4% to $74.04 per barrel. Brent oil fell 0.6%, settling at $77.2 per barrel.

Although conflicts between Israel and Hamas persist, positive signals from ongoing dialogues between the parties have eased market risks. Furthermore, Iran's initial firm stance on retaliating against Israel following the death of a senior official is now gradually subsiding. This has led the market to reassess the likelihood of the conflict spreading.

Another factor pressuring the market is Iraq's announcement that it has reached a profit-sharing agreement with energy giant BP to develop four oil and gas fields in Kirkuk, northern Iraq. Such agreements could accelerate the goal of increasing OPEC member production capacity to 5 million barrels per day. Additionally, the new agreement could pave the way for Iraq to gradually resume production of about 600,000 barrels per day in the northern region, which has been suspended since last year due to a dispute with the Kurdish regional government.

On the Saudi Arabia side, under consumption pressure from Asia, particularly China and India, the country’s crude oil exports in June fell to 6.047 million barrels per day from the previous level of 6.118 million barrels per day, according to Joint Organizations Data Initiative (JODI).

Coffee Prices Extend Rally for Fifth Consecutive Session

In contrast to the energy market, buying dominated the coffee market during yesterday's trading session. Concerns about weather conditions in Brazil's main production region and tight supply in Vietnam continued to push coffee prices higher for the fifth consecutive session. By the end of yesterday, Arabica coffee prices for December contracts increased by 1.7%, while Robusta coffee prices for November contracts rose by 3.2%, with continuous Robusta contracts setting a new record high of nearly $4,900 per ton.

Some businesses reported that coffee exports in Vietnam remain slow due to very limited domestic supply. Furthermore, farmers in Indonesia, the world's third-largest Robusta producer, are holding onto their coffee, waiting for higher prices. This could exacerbate the supply shortage in the market.

Meanwhile, Brazilian farmers face dual concerns over weather conditions affecting the 2025-2026 coffee crop. On one hand, there are worries about the return of frost with cold air waves at the end of August. On the other hand, persistent drought in the Arabica coffee regions raises concerns about the potential yield of the next crop, especially if the rains are delayed.

In the domestic market, as of the morning of August 21, the price of raw coffee in the Central Highlands and Southern provinces followed the global trend, increasing by 300 VND/kg compared to yesterday, currently ranging between 117,900 and 118,700 VND/kg.

Source: MXV