Corn prices have dropped for the third consecutive week to $ 184/ton.

The Vietnam (MXV) raw materials Stock Exchange said the world Raw Material market was covered in red last week. At the end, the MXV index fell by more than 2% to 2,169 points. On the energy market, world oil prices have recorded a second consecutive week of decline. Apart from the general market trend, the group of agricultural products is also deeply in red, in which the weakening of corn dynamics stands out.

Crude oil prices fall for a week

According to MXV, oil prices have just experienced their second consecutive week of decline while the world market is faced with numerous uncertainties concerning supply, while the feeling of investors is under pressure due to concerns about the health of the first world economy.

At the end of the week, the price of Brent oil stopped at 61.29 USD/barrel, losing 6.85%. WTI oil also recorded a 7.51%drop, passing the barrel of the barrel under the threshold of the $ 6 and closing at 58.29 dollars per barrel.

The downward pressure on prices comes mainly from speculation according to which OPEC+ continues to increase its production in June, following the decision to increase production in May. This information, which appeared on April 23, caused a sharp drop in prices for Brent and WTI oil in the first three sessions of the week, with a decrease of 5.61 % and 7.63 %, respectively, in just three days, from April 28 to 30. This information has become even more negative when some OPEC+ members continued to produce beyond their quotas, arousing concerns about an excess market. It should be noted that the meeting between the eight member countries of OPEC+ was also advanced by two days earlier than expected, on May 3, making the market even more anxious about the production decision of June.

In addition to supply factors, a series of negative macroeconomic data from the United States has also contributed to increasing pressure on oil prices. During the three days going from April 29 to May 1, negative indicators were continuously announced, ranging from the narrowing of the labor market to the decline in consumer confidence, including the first drop in American GDP in the first quarter of 2025 in the last three years. Concerns about American economic prospects have aroused doubts about future oil demand.

However, investors still feed hopes for the possibility of concluding new trade agreements between the United States and its main partners, especially between the United States and China. During last week, China announced that the United States was reaching out to the second world economy about future negotiations; Information makes it possible to slow down the fall in oil prices.

In addition, the decrease in crude oil reserves in the United States as well as the drop in oil exports from Venezuela also helped support oil prices. In addition, the volatile evolution of relations between the United States and Iran has also prompted the market to speculate on the prospect of an absence of additional supply from Iran, the main reason for the only price recovery session this week, on the occasion of International Labor Day on May 1.

The list of prices for agricultural products is flooded with red

At the end of the last week of negotiation, the agricultural product market has recorded negative developments when the 7 products in the group were weakened simultaneously. In particular, corn and wheat markets simultaneously closed the red negotiation week, clearly reflecting the impact of supply and demand factors as well as technical developments.

Corn prices alone recorded their third consecutive weekly decrease, losing about 3.4% at 184 dollars per tonne, while wheat prices fell slightly from $ 0.37% per tonne thanks to a strong recovery during the last sessions of the week.

The downward pressure on corn prices comes from both technical and psychological factors after the previous unbearable rally. The latest export sales report shows that the United States has only sold 1.01 million tonnes of corn for the 2024-25 campaign below the recent average. Despite the participation of many large customers such as South Korea, Vietnam, Israel and Mexico, demand is still not strong enough to create a dynamic of price increase. The information that Turkey has opened a duty -free import quota of 1 million tonnes of corn is only slightly encouraging and has no clear impact on the market.

On the meteorological level, the planting conditions favorable to the United States, associated with the positive harvest conditions in South America, have appeased concerns about supply, adding pressure on corn prices this week.

For wheat, the market has recorded a strong technical recovery in the last three sessions of the week after falling into the territory of occurrence. The July contract rebounded significantly thanks to technical purchases and certain fundamentals of support. While harvesting conditions in France remain stable, drought located in northern Europe and the United Kingdom has aroused concerns about yields. In the United States, spring wheat sowing increased on April 27 at only 30 % of the planned area, which is lower than the expectations of the market and the same period of last year, thus arousing concerns about this year’s planting activities and prices.

On the other hand, the agricultural consulting firm Sovecon noted its Russian wheat export forecasts for the 2024-2025 campaign to 40.7 million tonnes, adding pressure on the world wheat market.

Price of some other goods