Prices of raw materials surge, led by cocoa with a 6.3% increase
Prices of raw materials surge, led by cocoa with a 6.3% increase
The Vietnam Commodity Exchange (MXV) reported that on November 7, a surge in raw material prices across the board lifted the MXV-Index by 1.69 per cent to 2,208 points, marking the highest level in three weeks.
Farmers drying cocoa beans. — Photo bnews.vn |
All nine items in the industrial raw materials group recorded price increases, with cocoa leading at a significant 6.3 per cent rise, followed closely by Arabica and Robusta coffee, which both climbed over 4 per cent.
Cocoa saw the highest price increase among industrial raw materials, with a 6.3 per cent gain driven by capital flows across financial markets. Cocoa production in Ghana, the world’s second-largest producer, has partially recovered this year but remains below historical averages.
Meanwhile, cocoa arrivals at ports in Côte d'Ivoire, the world's largest cocoa producer, may decline in December due to recent heavy rain and flooding, which has impacted bean quality. According to estimates from a European export company executive, approximately 20-25 per cent of the beans are of poor quality, and around 10-15 per cent have been rejected.
Arabica coffee prices increased by 4.7 per cent, reaching their highest price in nearly a month, while Robusta coffee rose by 4.2 per cent. This price hike is attributed to inter-market capital flows, as the Dollar Index dropped by 0.55 per cent, with investors shifting away from safe assets in favour of more lucrative investments such as commodities and stocks.
Concerns over Brazil's coffee crop for 2025-26 also contributed to these gains, as recovery remains uncertain despite recent rainfall.
Agricultural analyst Ana Carolina Gomes noted that the quality of coffee beans for the 2025-26 season has not improved significantly, even though substantial rain since mid-October has helped coffee plants enter the main flowering period. The upcoming 2025 harvest is expected to be lower due to the previous drought and prolonged high temperatures.
Key coffee-growing areas in Brazil have recorded rainfall levels below the historical average, adding to concerns over crop recovery.
Domestically, coffee prices in the Central Highlands and Southeast regions of Việt Nam currently range from VNĐ107,500 to VNĐ108,000 (US$4.22) per kilogramme, nearly double the prices from the same time last year, when they ranged from VNĐ60,200 to VNĐ61,000 per kg.
This year to date, coffee prices have risen over VNĐ40,000 per kg from VNĐ67,500–68,400 per kg. The market continues to be affected by weather conditions, with Brazil experiencing drought while rain is forecast for Việt Nam this weekend.
