 |
| Pepper price today August 8, 2023, still concerned about supply shortage, resistance to increase appears, expected to regain lost price level. (Source: Borneo Talk) |
Pepper prices today in the domestic market are stable in some key localities, trading from 71,000 - 74,500 VND/kg.
Specifically, today's pepper price in Gia Lai is the lowest in the market at 71,000 VND/kg.
Pepper prices today in Dong Nai province (71,500 VND/kg); Dak Nong, Dak Lak (72,000 VND/kg); Binh Phuoc (73,500 VND/kg) and Ba Ria - Vung Tau are at the lowest level of 74,500 VND/kg.
Thus, after 6 consecutive days of increase, pepper prices in the domestic market remained stable.
In the world market, the International Pepper Community (IPC) assessed that the pepper market last week had mixed reactions when only the price of Indonesian white pepper decreased. Last week, the recovery of the USD made commodity prices disadvantageous, such as the export price of pepper in Indonesia.
However, the pepper market is less affected than other markets by major changes in monetary and financial policies in the world. Supply and demand are the decisive factors in pepper prices in different countries.
Currently, the pepper supply is being supplemented by countries that harvest in the third quarter of 2023 such as Indonesia, Brazil and Malaysia... However, there is still a shortage concern. Because the output has decreased due to abnormal weather and the cultivated area has decreased due to low profits.
Global pepper output in 2023 is forecast to continue to decrease by about 1% compared to 2022, reaching about 531 thousand tons. In fact, many pepper farmers in major producing countries such as Vietnam, Brazil, and Indonesia are gradually switching to growing other crops with higher value. Therefore, global pepper production is forecast to continue to decrease.
Regarding prices, analysts predict that the market will not have a 6-day consecutive increase like the first week of August. The market will face resistance to the increase in pepper, along with new crops from Indonesia and Brazil continuing to enter the market. Although not increasing strongly, domestic pepper prices are expected to regain the 75,000 VND/kg mark.
It is noted that domestic black pepper prices have increased by 28%, from VND58,000 - 60,000/kg reached at the beginning of the year, to a peak of VND73,000 - 77,000/kg in May, driven by compensatory purchases after 3 years of closure to fight the Covid-19 pandemic in China.
However, pepper prices then reversed and decreased, and by mid-July were only around 67,500 - 70,000 VND/kg, a decrease of more than 9% compared to the peak reached in mid-May.
Pepper prices have fallen again mainly because China has almost collected enough goods and started to slow down its purchases, while the purchasing power of pepper and spices in the European and American markets continues to be sluggish as the economic crisis continues.
Besides, the fact that major pepper producing countries in the world such as Brazil and Indonesia are entering the harvest season also puts pressure on world pepper prices in general and Vietnam in particular.
Source
Comment (0)