Pepper price today November 24, 2023, psychology of wanting to sell pepper to recover capital, reason for price increase in domestic market

Pepper price today, November 24, 2023 in the domestic market is stable in some key localities, trading from 69,000 - 72,000 VND/kg.

Pepper price today November 24, 2023, the psychology of wanting to sell pepper to recover capital, the reason for the price increase in the domestic market. (Source: Getty)

Pepper price today, November 24, 2023 in the domestic market is stable in some key localities, trading from 69,000 - 72,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 69,500 VND/kg.

Pepper prices today in Dong Nai province (69,000 VND/kg); Dak Nong, Dak Lak (70,500 VND/kg); Binh Phuoc (72,000 VND/kg) and Ba Ria - Vung Tau are all at the highest level of 72,000 VND/kg.

Regarding the increase in domestic pepper prices this time, experts said that the reason is due to the high demand for imported goods to serve the year-end festival season from other countries. Along with that, the falling USD makes exports more favorable. The increase has also been seen in some other pepper export markets in recent weeks.

However, opinions at forums of Vietnamese pepper growers also add another reason, in addition to the two main factors mentioned above. That is the current capital flow is shifting to coffee. Coffee is currently in harvest season, with good prices helping farmers and traders in many regions to be excited.

Therefore, the general mentality is to sell pepper to get capital to switch to coffee. And whoever wants to sell stimulates the price to increase. From there, the phenomenon of customers signing contracts requiring immediate delivery occurs, so agents try to collect to supply the company. The above phenomenon temporarily pushes the market up, but is not sustainable.

In the first half of November 2023, Vietnam exported 9,570 tons of pepper, with a total export turnover of 36.9 million USD. The US, China and UAE were the three main export markets in the first half of November with export volumes reaching 1,572 tons, 993 tons and 636 tons, respectively.

According to peppertrade , Brazilian pepper prices are still more attractive than domestic raw material prices due to the depreciation of the Brazilian real against the US dollar. Accordingly, the most recent recorded price in Espírito Santo state is 13.5 real/kg and in Pará state is around 12.5 real/kg.

Regarding the pepper production situation in Brazil, farmers are currently deeply concerned about the lack of rain that has affected and led to the mass death of crops, a problem that was recently reported by the state of Para.

Accordingly, the current drought weather conditions are described as “worse than what the state has ever witnessed”, which is alarming and could certainly lead to high rates of pepper crop damage, affecting upcoming production.

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