Pepper price today September 18, 2023, reserves are gradually depleting, there is an element of increased buying, the market shows positive signals for the last quarter of the year

Pepper prices today in the domestic market are stable in some key localities, trading from 70,000 - 72,500 VND/kg.

Pepper price today September 18, 2023, reserves are running out, there is an element of increased buying, the market is sending positive signals for the last quarter of the year. (Source: Borneo Talk)

Pepper prices today in the domestic market are stable in some key localities, trading from 70,000 - 72,500 VND/kg.

Specifically, pepper price today in Gia Lai is at 70,000 VND/kg.

Pepper prices today in Dong Nai province (70,500 VND/kg); Dak Nong, Dak Lak (71,000 VND/kg); Binh Phuoc (72,000 VND/kg) and Ba Ria - Vung Tau are at the highest level of 72,500 VND/kg.

Last week, the market saw macroeconomic factors that strongly affected pepper prices. Domestically, capital flows have not been cleared, causing both buyers and sellers to be "indifferent" to the market.

According to KT&DT , a pepper export trader, the tug-of-war between buyers and sellers for futures contracts is still very intense. Whoever gives in because they need money more will cause the market to tilt towards the other side.

After disappointment in Indonesia, global pepper importers will look forward to Vietnam’s new pepper harvest. Currently, European and American importers’ inventories are still at safe levels, so they are taking advantage of this to negotiate prices for orders delivered in the first and second quarters of 2024.

Meanwhile, domestic export companies estimate that next year's crop output will decline sharply. The reason is that farmers have switched to growing durian, coffee and other crops with higher economic value, so they are very cautious in signing contracts for delivery on a fixed term.

The dwindling reserves are a sign that importing countries will increase purchases in the coming time, without having to wait until Vietnam enters the new harvest season. This is expected to help pepper prices increase in the fourth quarter of this year.

In the world market, the Indian Pepper and Spices Trade Association (IPSTA) said that Indian pepper is priced higher in the world market, at 7,700 USD/ton, while Sri Lankan pepper is priced at 6,700 USD and Vietnam is 3,700 USD.

The country's farming community is concerned that higher pepper prices in the domestic market could pave the way for more imports from Sri Lanka.

According to IPSTA, demand for black pepper in overseas markets has declined, especially in China, the US and the UK due to the economic slowdown. At the same time, the Indian economy is booming with increasing demand, especially from Masala producers.

On the production front, climate change will have an impact on pepper cultivation in countries including India, which is reporting a lower crop in the current season. While Brazil has also recorded a decline in output this year, according to The Hindu Business Line.

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