Are pepper prices rebounding?

The forecast for pepper prices on June 22, 2024, continues to rise amidst a very limited supply from farmers to the market. Estimates show that the whole country only has about 60,000 tons of pepper left for export from now until the new crop year.

The Vietnam Pepper and Spice Association (VPSA) also stated that while there is still pepper supply from farmers, instead of selling it off in large quantities like in previous years, the amount of goods entering the market now is only "trickling" as farmers wait and see what will happen amidst the rising price of this commodity.

As for businesses, they are facing difficulties in both buying and selling. This is because the supply of goods to the market is not abundant, and businesses that had previously signed contracts at fixed prices are now unable to purchase goods due to the drastic price increases.

Regarding supply, Mr. Le Duc Huy – General Director of Simexco Dak Lak (2/9 Import-Export Company Limited) – predicted that export volumes may decrease sharply in the coming months due to low inventory levels.

"In the past four years, no one has planted any more pepper, so the planted area has shrunk, leading to a decrease in production. With the current drought conditions, increasing pepper production for next year will also be a major challenge," warned Mr. Le Duc Huy.

In addition, on June 21, 2024, domestic pepper prices in the Southeast region increased slightly by 1,000 VND/kg in some localities, trading around 157,600 VND/kg, with the highest purchase price in Dak Nong and Dak Lak provinces at 160,000 VND/kg.

Pepper price forecast for June 22, 2024: Pepper prices are rebounding.

Accordingly, the price of pepper in Dak Lak is being purchased at 160,000 VND/kg. The price of pepper in Chu Se ( Gia Lai ) is currently at 156,000 VND/kg. The price of pepper in Dak Nong today remains unchanged at 160,000 VND/kg compared to yesterday.

In the Southeast region, pepper prices increased by 1,000 VND/kg today. Specifically, in Ba Ria - Vung Tau, the price reached 157,000 VND/kg, an increase of 1,000 VND/kg; in Binh Phuoc, the price reached 155,000 VND/kg.

Domestic pepper prices on June 21 , 2024

Provinces and cities	Unit	The price offered by traders.	Increase/decrease compared to yesterday
Chu Se (Gia Lai)	VND/kg	156,000	-
­­ Dak Lak	VND/kg	160,000	-
Boeing Nong	VND/kg	160,000-
Binh Phuoc	VND/kg	155,000	-
Ba Ria - Vung Tau	VND/kg	157,000	+1,000

World pepper prices Today

At the close of the most recent trading session, the International Pepper Community (IPC) listed Lampung black pepper (Indonesia) at $6,418/ton; Brazilian ASTA 570 black pepper at $7,600/ton (down 3.95%); and Kuching (Malaysia) ASTA black pepper at $7,500/ton (a sharp increase of 34.67%).

Muntok white pepper is priced at US$8,377/ton; Malaysian ASTA white pepper prices have risen to US$8,800/ton (a sharp increase of 17.05%).

Vietnamese black pepper is trading at $7,800/ton; the 550 g/l variety at $8,000/ton; and white pepper at $12,000/ton.

According to preliminary statistics from the Vietnam Pepper and Spice Association (VPSA), in the first 16 days of June 2024, Vietnam exported 16,211 tons of pepper, including 14,347 tons of black pepper and 1,864 tons of white pepper, with a total export value of US$77.8 million. Conversely, Vietnam imported 1,357 tons, with a total import value of US$6.6 million.

Statistics from the General Department of Customs show that, as of the end of May 2024, Vietnam had exported nearly 110,000 tons of various types of pepper, earning 469 million USD. Compared to the same period last year, pepper exports decreased by 16.8% in volume but increased by 15.4% in value. Excluding inventory carried over from last year, Vietnam still has approximately 60,000 tons of pepper available for export in the remaining months of the year.

Experts believe that with the current hot weather conditions and the limited planting area, the supply of pepper next year will remain a challenge.

According to a representative from PTEXIM Corp, inventory levels held by middlemen, a crucial link connecting farmers with exporters, are at their lowest in many years.

In particular, some dealers have faced shortages when they sell out and are unable to repurchase when the market rises rapidly. At the same time, the capital cost for importing and storing pepper has become increasingly expensive, making the purchase and storage of inventory require a large amount of capital.

PTEXIM Corp predicts that this situation will cause pepper prices to continue rising in the coming period.

Source: https://congthuong.vn/du-bao-gia-tieu-ngay-2262024-gia-tieu-dang-bat-tang-tro-lai-327440.html