Pepper price today October 29, 2023, profit decreased, supply narrowed, market outlook 2024

Pepper prices today in the domestic market remained stable in some key localities, trading from 67,000 - 70,000 VND/kg.

Pepper price today October 29, 2023, profit decreased, supply narrowed, market outlook 2024. (Source: Borneo Talk)

Pepper prices today in the domestic market remained stable in some key localities, trading from 67,000 - 70,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 67,000 VND/kg.

Pepper prices today in Dong Nai province (68,000 VND/kg); Dak Nong, Dak Lak (68,500 VND/kg); Binh Phuoc (69,500 VND/kg) and Ba Ria - Vung Tau are at the highest level of 70,000 VND/kg.

The International Pepper Community (IPC) said that the market continued to show a negative outlook this week. Indian pepper prices were reported stable this week. As the Indonesian Rupiah weakened against the USD, both domestic and international pepper prices in the country weakened.

According to the Vietnam Pepper and Spices Association (VPSA), Vietnam's pepper output in 2023 is estimated at about 190,000 tons, an increase of 3.8% compared to 2022.

The El Nino phenomenon is forecast to occur at the end of the year and last until early next year, leading to drought, lack of rain and possibly a reduction in Vietnam’s pepper output next year. Businesses also have similar assessments.

Recent reports from Nedspice Group and Simexco Daklak both share the same opinion that Vietnam's pepper output will decrease by 15% in 2024. Weather conditions in the coming months will become important to the next crop's yield.

Simexco Daklak's survey on pepper supply in Vietnam shows that supply is gradually decreasing due to low crop productivity and reduced profits.

Current inventories are estimated at only 15,000 - 20,000 tonnes and the next harvest is expected to yield only 140,000 - 150,000 tonnes, a significant decrease compared to last year.

The domestic pepper market in the third quarter of this year did not have many fluctuations when the price decreased slightly in July, increased again in August and September but decreased again in mid-October, currently the price is averaging at 70,000 VND/kg, compared to the same period last year, the average domestic purchase price in the first 9 months decreased by 10%.

VPSA assessed that Vietnam has exported all of its 2023 harvest, part of which was taken from imports as well as inventories from the previous year. It is expected that Vietnam will export about 45 thousand tons in the last 3 months of the year, bringing the total export volume for the whole year of 2023 to an estimated 250 thousand tons. The 2023 inventory carried over to 2024 will be the lowest in many years.

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