Domestic pepper prices cool down after a series of hot days

Domestic pepper price today

Pepper price today, June 16, 2024, in the Central Highlands and Southeast regions fluctuated up and down from 1,000 VND/kg in some localities, trading around 156,000 VND/kg, the highest purchase price in Dak Nong province was 158,000 VND/kg.

Giá tiêu hôm nay 16/6/2024: Giá tiêu trong nước hạ nhiệt sau chuỗi ngày tăng nóng

Pepper price today June 16, 2024: Domestic pepper price cools down after a series of hot days

Accordingly, the price of Dak Lak pepper is purchased at 157,000 VND/kg, unchanged from yesterday. The price of Chu Se pepper (Gia Lai) is currently at 155,000 VND/kg, unchanged from yesterday. The price of Dak Nong pepper today is recorded at 158,000 VND/kg, an increase of 1,000 VND/kg compared to yesterday.

In the Southeast region, pepper prices today decreased by 1,000 VND/kg. Specifically, in Ba Ria - Vung Tau, it increased to 156,000 VND/kg, down 1,000 VND/kg; in Binh Phuoc , pepper prices reached 155,000 VND/kg, down 1,000 VND/kg.

After yesterday's sharp drop, domestic pepper prices today continued to fluctuate up and down at 155,000 - 158,000 VND/kg. Thus, domestic pepper prices today fluctuated in most key localities compared to yesterday, up and down by 1,000 VND/kg. In all localities, pepper prices were at 155,000 VND/kg or higher. The highest pepper price was recorded at 158,000 VND/kg.

World pepper price today

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,418 USD/ton, down 0.53%; the price of Brazilian black pepper ASTA 570 at 7,900 USD/ton; the price of Kuching black pepper (Malaysia) ASTA remained at 4,900 USD/ton.

Muntok white pepper price is 8,377 USD/ton, down 0.54%; Malaysian ASTA white pepper price remains at 7,300 USD/ton.

The price of Vietnamese black pepper increased sharply across the board, reaching 7,800 USD/ton (up 6.84%); 550 g/l at 8,000 USD/ton (up 2.56%); white pepper at 12,000 USD/ton (up 12.14%).

In just the past few days, domestic pepper prices have continuously decreased and suddenly increased sharply. In the past month, pepper prices have increased rapidly. In mid-May, pepper prices were at 120,000 VND/kg, by the end of May they had increased to 127,000 - 129,000 VND/kg and reached 150,000 VND/kg on June 5.

With this momentum, it is forecasted that in the second half of this year, pepper may reach the 200,000 VND/kg mark. During the growth cycle, there will be adjustments at some points due to speculation. However, the shortage of supply will continue to push pepper prices up in the long term.

This is the result of “overheated” speculation. At the same time, the high pepper price may trigger some pepper growers and dealers to sell pepper stored from other crops to the market.

Mr. Hoang Phuoc Binh, Permanent Vice President of the Chu Se Pepper Association (Gia Lai Province), said that the recent rapid growth in pepper prices is the result of speculation. Currently, with the increase in prices on the world market, domestic pepper prices are still lower, so many small retailers are taking advantage of this opportunity to hoard goods and push up prices.

The general psychology of pepper growers is to be happy with the high prices and wish to increase the prices further. However, for businesses, adjusting the input and output prices is extremely important to avoid price risks. If domestic pepper prices increase, businesses need to adjust export prices accordingly. Otherwise, they will face risks in terms of reputation and orders.

Therefore, industry experts assess that the adjustment of pepper prices is necessary to "balance" the market. However, the price level is unlikely to decrease deeply when pepper prices have entered a new price increase cycle in the context of low global pepper supply but increasing demand again.

Pepper is often intercropped with coffee and is closely related in price, so when coffee prices increase, people expect pepper prices to increase as well and may hold onto their stocks in the hope that prices will increase. This suggests that a similar trend may be occurring with both commodities in the market.

Pepper prices this week have fluctuated by around 10,000 VND/kg. Many experts predict that this is the result of “overheated” speculation. At the same time, the high pepper prices may trigger some pepper growers and dealers to sell pepper stored from other crops on the market.

Domestic pepper price on June 16 , 2024

Province, city	Unit	Trader purchase price	Increase/decrease compared to yesterday
Chu Se (Gia Lai)	VND/kg	155,000	0
Dak Lak	VND/kg	157.0000	0
Dak Nong	VND/kg	158,000	+ 1,000
Binh Phuoc	VND/kg	155,000	- 1,000
Ba Ria - Vung Tau	VND/kg	156,000	-1,000