Pepper price today June 18, 2024, scarce supply, agents cannot buy goods, pepper price may exceed previous cycle peak

Pepper price today, June 18, 2024, in the domestic market fluctuated in some key localities, trading from 155,000 - 158,000 VND/kg.

Pepper price today June 18, 2024, scarce supply, dealers cannot buy goods, pepper price may exceed the previous cycle peak. (Source: Food Hacks)

Pepper prices today, June 18, 2024, in the domestic market fluctuated in some key localities, trading from 155,000 - 158,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 155,000 VND/kg.

Pepper prices today in the provinces of Dong Nai (155,000 VND/kg); Dak Lak (157,000 VND/kg); Dak Nong (158,000 VND/kg); Ba Ria - Vung Tau (156,000 VND/kg) and Binh Phuoc (155,000 VND/kg).

Thus, domestic pepper prices today are stable in the remaining localities. The highest pepper price was recorded at 158,000 VND/kg.

After reaching a record high of 180,000 VND/kg in the middle of last week, domestic pepper prices have fluctuated sharply for 3 days with an increase and decrease range of 6,000 - 21,000 VND/kg, adjusting to around 156,000 VND/kg as it is now.

The main reason is speculation, many small retailers have taken advantage of the shortage of supply to hoard goods and push prices up in the previous period. Meanwhile, the record high pepper price has triggered a number of pepper growers and dealers to sell pepper stored from previous crops to the market.

With the current shortage of pepper supply, many industry experts believe that pepper prices in the coming time may exceed the peak of the previous price cycle, reaching more than 250,000 VND/kg, and may even reach 300,000 - 400,000 VND/kg.

In its latest report, PTEXIM Corp assessed that the current inventory level of intermediary traders, an important link connecting farmers with exporters, is considered low. In particular, some agents have faced a shortage of goods when they sold out and could not buy back when the market increased rapidly. The company said that this reason caused prices to escalate even further.

The average inventory in the hands of middlemen is very low, the lowest in recent years, due to the increasingly expensive capital cost of black pepper. Purchasing and storing inventory has become difficult and requires large capital, leading to low inventory.

PTEXIM Corp added that with Brazil forecast to have a poor harvest and slow harvest due to prolonged severe weather, spot black pepper prices at SPOT warehouses have continued to increase sharply. This has left many producers unprepared for production needs this year.

Many importers/processors expect additional raw material supply from Brazil and Indonesia, leading to a shortage of raw materials for production as Brazil/Indonesia has almost no offers, causing prices to continuously skyrocket in recent times.

In addition to supply and demand factors, the above factors are causing commodity prices to increase, setting a new floor, including pepper.

Commenting on pepper prices this week, experts said that they will continue to increase steadily in other countries, but the domestic market will continue to adjust, depending heavily on speculation.

Source