Supply reduction, can anchor prices at high levels

According to the pepper price forecast for May 28, 2024, due to scarce supply, the price of this agricultural product is expected to remain at 119,000 - 120,000 VND/kg.

In recent years, persistently low pepper prices have led to a decrease in planted area, which is one of the main reasons for the recent surge in pepper prices. Additionally, the dry weather conditions in April in the Central Highlands region have also contributed to this.

In addition, the shortage of empty containers has driven up sea freight rates by an average of about 30% in recent weeks and is expected to continue rising, adding to the cost of agricultural products, including pepper.

Pepper prices on May 28th may continue their upward trend.

Previously, on May 27, 2024, pepper prices in the Central Highlands and Southeast regions continued to increase by 1,000 VND/kg. Specifically, Dak Lak pepper was purchased at 119,000 VND/kg, an increase of 1,000 VND/kg compared to yesterday's price; Chu Se (Gia Lai) pepper was also at 119,000 VND/kg, an increase of 1,000 VND/kg compared to yesterday; and Dak Nong pepper recorded an increase of 500 VND/kg, reaching 119,500 VND/kg.

In the Southeast region, pepper prices also increased by 1,000 VND/kg. Accordingly, in Ba Ria - Vung Tau, prices reached a peak of 120,000 VND/kg; in Binh Phuoc, it reached 119,000 VND/kg; and in Dong Nai, it also remained at 119,000 VND/kg.

Notably, despite the high prices, pepper growers are limiting sales. This is because many still hope that pepper prices will rise even higher in the coming period. Compared to the end of April 2023, domestic pepper prices have increased by about 22%. This price is also nearly 50% higher than at the beginning of the year and almost 65% higher than the same period last year.

Local	Purchase price (Unit: VND/kg)	Change compared to yesterday (Unit: VND/kg)
Dak Lak	119,000	+1,000
Gia Lai	119,000	+1,000
Boeing Nong	119,500	+500
Ba Ria - Vung Tau	120,000	+1,000
Binh Phuoc	119,000	+1,000
Dong Nai	119,000	+1,000

(Domestic pepper price list as of May 27, 2024)

* Information for reference only. Prices may vary by location.

On the world market, updated pepper prices from the International Pepper Association (IPC) as of early this morning (Vietnam time) show that the trading prices of Lampung black pepper (Indonesia), Brazilian black pepper ASTA 570, and Kuching black pepper ASTA (Malaysia) remain stable. White pepper (Indonesia) is trading at US$7,179/ton. Brazilian black pepper ASTA 570 is trading at US$5,000/ton. Malaysian black pepper ASTA remains at US$4,900/ton. Malaysian white pepper ASTA is US$7,300/ton.

Prices for all types of pepper on the Kochi exchange (India) remained unchanged compared to yesterday. Garbled pepper traded at 60,600 Rupees/100kg, while Ungarbled pepper traded at 58,600 Rupees/100kg.

In recent weeks, global meteorological agencies have reported an increasing likelihood of a La Nina weather phenomenon occurring between June and August 2024. This could create favorable conditions for crop growth in South Asian countries, including pepper cultivation.

In Vietnam, the pepper harvest has concluded. The dry, sunny weather conditions from December until now have been favorable for harvesting and drying the crop. This has also resulted in better quality pepper.

Source: https://congthuong.vn/du-bao-gia-tieu-ngay-2852024-cung-giam-co-the-neo-gia-o-muc-cao-322665.html