At the end of the trading week from May 9 to May 15, the MXV-Index continued to weaken and once again lost the important psychological support level of 3,000 points. The red and green colors were mixed in 3 groups of Agricultural products, Industry and Energy, however, the overwhelming selling force in Metal group made this index drop sharply by nearly 5%, thereby causing the MXV-Index to drop sharply. down 1.28% to 2,975.07 points.
According to the Transaction Management Division of MXV, the trading value of the entire Department last week reached more than 6,000 billion VND per session in the past week, an increase of nearly 10% compared to the previous week. In which, the value of the metal group alone doubled, and accounted for nearly 25% of the total transaction value, accounting for the highest proportion since these indexes were published.
The safe haven role of precious metals is losing ground to the greenback
The Dollar Index continued to have a sixth consecutive week of gains, to the highest level in nearly 20 years, which was the main cause of pressure on the prices of items listed in the dollar last week. Although money flows around the world, especially in the US, have retreated from risky investment channels such as stocks and cryptocurrencies, the precious metal group’s role as a haven is being lost to the dollar. greenback, and investors are tending to hold more cash.
Besides, cash flow was also allocated to the bond market, after the 10-year US government bond yield reached its highest level since 2018, making this market more attractive than other markets. non-yielding assets such as precious metals. The sharp drop of nearly 7% of this interest rate is the most likely explanation for the decline of more than 6% in silver prices in the past week, despite the US consumer price index (CPI) in April next. continued to grow higher than market expectations.
Along with the increase in the consumer price index, the US producer price index (PPI) was announced to increase by 11% year-on-year, higher than expected, causing companies to increase selling prices to “share” cost pressure. This will be a potential factor to push up consumer inflation pressure in the future and force the US Federal Reserve (Fed) to be more aggressive in cooling down inflation.
The Dollar Index continued to have a sixth consecutive week of gains, to the highest level in nearly 20 years, which was the main cause of pressure on the prices of items listed in the dollar last week. Although money flows around the world, especially in the US, have retreated from risky investment channels such as stocks and cryptocurrencies, the precious metal group’s role as a haven is being lost to the dollar. greenback, and investors are tending to hold more cash.
Besides, cash flow was also allocated to the bond market, after the 10-year US government bond yield reached its highest level since 2018, making this market more attractive than other markets. non-yielding assets such as precious metals. The sharp drop of nearly 7% of this interest rate is the most likely explanation for the decline of more than 6% in silver prices in the past week, despite the US consumer price index (CPI) in April next. continued to grow higher than market expectations.
Along with the increase in the consumer price index, the US producer price index (PPI) was announced to increase by 11% year-on-year, higher than expected, causing companies to increase selling prices to “share” cost pressure. This will be a potential factor to push up consumer inflation pressure in the future and force the US Federal Reserve (Fed) to be more aggressive in cooling down inflation.
Base metal plunges
As for base metals, copper prices on the Comex Exchange fell more than 2% to nearly $9,200 per tonne, while iron ore prices plunged nearly 8% to $127 per ton. Not only copper and iron ore, other base metals are also under selling pressure in the context of the constantly strengthening Dollar, higher holding costs, and the epidemic situation in China. increasingly complex.
The consumption outlook for both copper and iron ore is very negative, as the Shanghai authorities tighten anti-epidemic policies until the end of May. The capital Beijing is also facing the risk of a shutdown to combat the epidemic, and could exacerbate disruptions in global supply chains. Despite the reassurance measures of the authorities, the epidemic situation will cause production and construction activities to stall for a while longer before the Government’s supportive policies appear or effective.
Wheat soars, leading the group of agricultural products
Closing last week, soybean prices recovered slightly by 1.5% thanks to the positive influence of soybean oil price movements and US soybean stocks at the end of crop year 21/22 continued to decrease in the Supply report. US Department of Agriculture (USDA) May Agricultural Product Demand.
In addition, US soybean stocks in crop year 22/23 were also lower than market expectations, which also helped support prices, balanced with Brazil’s production and inventory figures being revised up. from the country’s Crop Supply Authority monthly report.
Meanwhile, soybean meal recorded the 5th consecutive week of closing in the red due to mixed pressure on soybean oil. According to USDA projections, US soybean meal production in crop year 22/23 is forecast to increase to 48.1 million tons, up from 47.05 million tons this year.
As for base metals, copper prices on the Comex Exchange fell more than 2% to nearly $9,200 per tonne, while iron ore prices plunged nearly 8% to $127 per ton. Not only copper and iron ore, other base metals are also under selling pressure in the context of the constantly strengthening Dollar, higher holding costs, and the epidemic situation in China. increasingly complex.
The consumption outlook for both copper and iron ore is very negative, as the Shanghai authorities tighten anti-epidemic policies until the end of May. The capital Beijing is also facing the risk of a shutdown to combat the epidemic, and could exacerbate disruptions in global supply chains. Despite the reassurance measures of the authorities, the epidemic situation will cause production and construction activities to stall for a while longer before the Government’s supportive policies appear or effective.
Wheat soars, leading the group of agricultural products
Closing last week, soybean prices recovered slightly by 1.5% thanks to the positive influence of soybean oil price movements and US soybean stocks at the end of crop year 21/22 continued to decrease in the Supply report. US Department of Agriculture (USDA) May Agricultural Product Demand.
In addition, US soybean stocks in crop year 22/23 were also lower than market expectations, which also helped support prices, balanced with Brazil’s production and inventory figures being revised up. from the country’s Crop Supply Authority monthly report.
Meanwhile, soybean meal recorded the 5th consecutive week of closing in the red due to mixed pressure on soybean oil. According to USDA projections, US soybean meal production in crop year 22/23 is forecast to increase to 48.1 million tons, up from 47.05 million tons this year.
Wheat was the commodity that gained the most in the agricultural product group last week, playing an important role in helping the MXV-Index of Agricultural Products contrast with all other commodity groups.
US winter wheat production this year is expected at just 31.9 million tons, much lower than the market forecast of 33.7 million tons. In particular, Hard Red wheat is expected to decrease by more than 20% compared to last year, which has helped Kansas wheat rise sharply by nearly 10%.
US winter wheat production this year is expected at just 31.9 million tons, much lower than the market forecast of 33.7 million tons. In particular, Hard Red wheat is expected to decrease by more than 20% compared to last year, which has helped Kansas wheat rise sharply by nearly 10%.
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