Unexpected plunge after strong correction?

Pepper prices are forecasted to continue to decline sharply on June 15, 2024. The sudden drop in pepper prices in the past few days is mainly due to "overheated" speculation as pepper prices have continuously increased sharply in the past 2 weeks. The high pepper prices may trigger some pepper growers and dealers to sell pepper stored in other crops on the market.

Industry experts said yesterday's price adjustment was necessary to help the market become more balanced. However, the price level is unlikely to decrease significantly as pepper prices have entered a new price increase cycle, which could last 8-10 years, in the context of low global pepper supply but increasing demand.

However, based on the supply-demand relationship, pepper prices have entered a new price increase cycle and are unlikely to fall to previous low levels. Pepper prices are currently forecast by many experts and industry organizations to surpass the peak of the previous price cycle (VND250,000/kg) in the context of low pepper supply but global demand is increasing again.

"Looking back at the history of the pepper market, it has gone through many cycles of price increases and decreases. The pepper price increase cycle usually lasts from 8 to 10 years and it is predicted that the price will peak and will be higher than the previous cycle," said Mr. Hoang Phuoc Binh - General Secretary of the Chu Se Pepper Association.

Pepper price today, June 14, 2024, in the Central Highlands and Southeast regions increased slightly from 1,000 - 5,000 VND/kg in some localities, trading around 160,000 VND/kg, the highest purchase price in Dak Nong and Binh Phuoc provinces is 162,000 VND/kg.

Pepper price forecast June 15, 2024: Unexpected plunge after strong adjustment

Accordingly, the price of Dak Lak pepper is purchased at 160,000 VND/kg, stable compared to yesterday's price. The price of Chu Se pepper (Gia Lai) is currently at 160,000 VND/kg, an increase of 5,000 VND/kg compared to yesterday. The price of Dak Nong pepper today is recorded at a record price of 162,000 VND/kg, an increase of 2,000 VND/kg compared to yesterday.

In the Southeast region, pepper prices today increased from 1,000 - 3,000 VND/kg. Specifically, in Ba Ria - Vung Tau, it reached 161,000 VND/kg, an increase of 1,000 VND/kg; in Binh Phuoc, pepper prices reached 162,000 VND/kg, an increase of 3,000 VND/kg.

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,448 USD/ton (down 0.01%); the price of Brazilian black pepper ASTA 570 at 8,500 USD/ton; the price of Kuching black pepper (Malaysia) ASTA remained at 4,900 USD/ton.

Muntok white pepper price is 8,416 USD/ton (down 0.01%); Malaysian ASTA white pepper price remains at 7,300 USD/ton.

The price of Vietnamese black pepper increased sharply across the board, reaching 7,800 USD/ton (up 6.84%); 550 g/l at 8,000 USD/ton (up 2.56%); white pepper at 12,000 USD/ton (up 12.14%).

Domestic pepper price on June 14 , 2024

Province, city	Unit	Trader purchase price	Increase/decrease compared to yesterday
Chu Se ( Gia Lai )	VND/kg	160,000	+5,000
­­ Dak Lak	VND/kg	160,000	0
Dak Nong	VND/kg	162,000	+2,000
Binh Phuoc	VND/kg	162,000	+3,000
Ba Ria - Vung Tau	VND/kg	161,000	+1,000

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,448 USD/ton (down 3 USD); the price of Brazilian black pepper ASTA 570 at 8,500 USD/ton (up 3.53%); the price of Kuching black pepper (Malaysia) ASTA remained at 4,900 USD/ton.

Muntok white pepper price is 8,420 USD/ton (up 11.82%); Malaysian ASTA white pepper price remains at 7,300 USD/ton.

Vietnamese black pepper prices remain high, trading at 6,500 USD/ton for 500 g/l; 6,700 USD/ton for 550 g/l (up 11.94%); white pepper price at 9,500 USD/ton (up 15.79%).

Recently, some enterprises exporting agricultural products such as pepper and coffee reported that export containers were missing or lost when they reached importers.

Faced with this phenomenon, a representative of the Import-Export Department (Ministry of Industry and Trade) said that there is still no basis to confirm where the loss of goods occurs, at which location, while goods transported from the exporter to the importer go through many different stages, with many units participating in handling the goods.

“In the immediate future, the Import-Export Department has contacted and discussed with VPSA and Saigon Newport Corporation, requesting that the two sides soon sit down together, discuss directly, provide more information to clarify the cause of the incident and take measures to increase security and safety for import-export shipments,” said a representative of the Import-Export Department.

It is expected that on the morning of June 13, VPSA and Saigon Newport Corporation will have a direct meeting to discuss this issue.

Previously, VPSA issued a warning about the situation where some members of the Association lost a part of the volume of exported goods. Specifically, the importer discovered that the goods were in short supply compared to the actual contracted quantity, while the volume of the container including the goods inside was weighed at the port according to the port weighing slip, all showing that the goods had the full volume at the time of unloading at the port.

Information for reference only. Prices may vary by location.

Source: https://congthuong.vn/du-bao-gia-tieu-ngay-1562024-bat-ngo-lao-doc-sau-dot-dieu-chinh-manh-326217.html