List of reasons causing downward pressure on the market, negative outlook

Pepper price today October 27, 2024 in the domestic market decreased slightly in some key localities, trading from 144,500 - 146,500 VND/kg.

Pepper price today October 27, 2024: List of reasons causing downward pressure on the market, negative outlook. (Source: Food Hacks)

Pepper price today October 27, 2024 in the domestic market decreased slightly in some key localities, trading from 144,500 - 146,500 VND/kg.

Specifically, pepper price today in Gia Lai is at 144,500 VND/kg.

Pepper prices today in the provinces of Dong Nai (144,500 VND/kg); Dak Lak (146,500 VND/kg); Dak Nong (146,500 VND/kg); Ba Ria - Vung Tau (146,000 VND/kg) and Binh Phuoc (145,000 VND/kg).

Thus, after 2 days of increase, domestic pepper prices today turned to decrease slightly in some key growing areas, down 200 - 1,200 VND/kg. The highest pepper price is at 146,500 VND/kg.

In the third quarter, the price of black pepper in the domestic market in Vietnam decreased by a total of 3-6% (5,000-9,500 VND/kg) compared to the end of the second quarter. The price of this item then continued to decrease by another 1-3% (1,000-4,000 VND/kg) from the beginning of October until now.

In the export market, according to updates from the International Pepper Community (IPC), pepper export prices from Vietnam as well as many other countries have also decreased in recent weeks.

The market is under pressure as agricultural companies, agents and intermediaries are actively selling black pepper. This activity is mainly driven by liquidity needs, as sellers seek to raise capital to invest in coffee, an agricultural product that is in the harvest season.

The harvest season in Brazil and Indonesia, while global demand has not increased strongly, along with China not buying much, also contributed to the price drop.

However, low domestic inventories have kept pepper prices high. Domestic pepper prices are still 80% higher than at the beginning of the year and double the same period last year. Pepper and coffee are the two agricultural products with the strongest price increases in recent times.

According to a recent report by Nedspice, Vietnam's pepper exports in the fourth quarter will depend on the release of multi-year carryover stocks held by major investors and additional import volumes.

Typically, the October coffee harvest prompts middlemen to liquidate pepper to trade coffee. However, this year with lower inventories and the coffee harvest delayed until November, liquidation of pepper stocks could be significantly reduced.

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,724 USD/ton, down 0.22%; the price of Brazilian black pepper ASTA 570 at 6,400 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 8,500 USD/ton.

Muntok white pepper price is 9,205 USD/ton, down 0.23%; Malaysian ASTA white pepper price is at 11,000 USD/ton.

Vietnamese black pepper price is traded at 6,500 USD/ton for 500 g/l; 550 g/l at 6,800 USD/ton; white pepper price at 9,500 USD/ton. IPC adjusts down Indonesian pepper price.

The International Pepper Community said that this week's pepper market showed a rather negative outlook as no market reported an increase.

Indian domestic and international pepper prices continued to report a downward trend for a month. Both domestic and international Indonesian pepper prices were stable this week. High US dollar restrained the increase in pepper prices in other countries.

Source: https://baoquocte.vn/gia-tieu-hom-nay-27102024-diem-danh-ly-do-gay-ap-luc-giam-cho-thi-truong-trien-vong-tieu-cuc-291472.html