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| Pepper price today September 5, 2023, experts have positive comments, pepper price 'has a bright chance' to increase. (Source: Black Pepper Plant) |
Pepper prices today in the domestic market continued to move sideways in some key localities, trading from 69,000 - 72,500 VND/kg.
Specifically, pepper price today in Gia Lai is at 69,000 VND/kg.
Pepper prices today in Dong Nai province (70,000 VND/kg); Dak Nong, Dak Lak (70,500 VND/kg); Binh Phuoc (72,000 VND/kg) and Ba Ria - Vung Tau are at the highest level of 72,500 VND/kg.
Thus, in the domestic market, in the first days of September, pepper prices continued to extend their stable streak. It is noted that domestic pepper prices were quite stable in July, but fluctuated strongly in August.
In the Central Highlands and Southern provinces, black pepper prices increased by VND3,500/kg in the first week of August to VND71,000-74,000/kg. However, prices then decreased to VND69,000-71,500/kg as of August 20, a decrease of VND2,000-2,500/kg.
Weak purchasing power from traditional markets such as the US and Europe, plus signs of reduced purchasing from the Chinese market (since June), along with the psychology of waiting for the harvest in Brazil and Indonesia are the reasons for the decline in pepper prices.
The current factors hindering pepper prices, according to experts, are still inflation in the US and Europe, the slowdown of the Chinese economy causing a decline in global purchasing power. The recovery of the US dollar pushes down pepper prices in exporting countries.
However, in the medium and long term, the upward momentum of pepper prices is very bright. First, there is concern about the decline in global production from the ongoing harvest in Indonesia and Brazil, and further ahead in next year's harvest in Vietnam and India. The cause is harsh weather and farmers cutting down pepper to plant higher value crops.
Next, the World Bank's forecast for some economies such as the US, Europe and China has a positive outlook by the end of the year, so the purchasing power of pepper and spices in these markets will recover.
This expectation also comes from orders for the year-end holidays. The recent Indian market is a clear example, when the upcoming festival season has pushed up pepper prices in this country for nearly 2 months.
Another factor is that the supply of the world's largest pepper producing country is weak, at least until the end of the first quarter of next year - when the new crop begins to hit the market. Experts predict that by September 2023, domestic enterprises will have exported all of the output from the last crop.
Raw pepper transactions in the market will be less in the fourth quarter of 2023, and the inventory from previous years of about 60,000 tons will be used for export until the next harvest in 2024, which is still 5-6 months away. According to many pepper industry experts, such supply is very low.
With the above speculations, experts believe that the market will be bustling again after the National Day holiday on September 2 this year to meet year-end orders.
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