Domestic pepper prices continue to fall, why?

Pepper price forecast for June 27, 2024 continues its sharp decline after days of rapid increases. Earlier this week, the domestic pepper market experienced its second sharp drop since the beginning of the month. Simultaneously, consecutive downward adjustments in export pepper prices have negatively impacted the domestic market.

On June 12th, domestic pepper prices reached a record high after many years of decline, hitting 180,000 VND/kg. Immediately afterwards, selling pressure at the peak caused prices to drop by 20,000 VND.

Thus, over the past two days, pepper prices have fallen by nearly 10%, but overall they are still at their highest level in the last eight years. Compared to the beginning of the year, current pepper prices have doubled, and are 2.2 times higher than the same period last year.

Commenting on the recent price fluctuations in the market, the Vietnam Pepper and Spice Association stated that the sharp drop at the beginning of the week may have stemmed from speculative activities by market participants. Specifically, dealers holding onto farmers' goods are now using price pressure to force farmers to sell their produce quickly.

Pepper price forecast for June 27, 2024: Domestic pepper prices continue to fall.

In the domestic market, today, June 26, 2024, pepper prices in the Southeast region continued to decrease by another 1,000 VND/kg in some localities, trading around 145,000 VND/kg, with the highest purchase price in Dak Lak province at 146,000 VND/kg.

Accordingly, the price of pepper from Dak Lak is being purchased at 146,000 VND/kg. The price of pepper from Chu Se (Gia Lai) is currently at 145,000 VND/kg. The price of pepper from Dak Nong today is recorded at 145,000 VND/kg.

In the Southeast region, pepper prices today decreased by 1,000 VND/kg. Specifically, in Ba Ria - Vung Tau, the price dropped to 145,000 VND/kg; in Binh Phuoc , the price also reached 145,000 VND/kg.

Domestic pepper prices on June 26 , 2024

Provinces and cities	Unit	The price offered by traders.	Increase/decrease compared to yesterday
Chu Se (Gia Lai)	VND/kg	145,000	-
­­ Dak Lak	VND/kg	146,000	-
Boeing Nong	VND/kg	145,000	-
Binh Phuoc	VND/kg	145,000	– 1,000
Ba Ria - Vung Tau	VND/kg	145,000	– 1,000

On the world market, the International Pepper Community (IPC) listed Lampung black pepper (Indonesia) at $7,112/ton, up 0.31%; Brazilian ASTA 570 black pepper at $7,500/ton, up $300/ton; and Kuching (Malaysia) ASTA black pepper at $7,500/ton.

Muntok white pepper is priced at US$9,056/ton, up 0.32%; Malaysian ASTA white pepper is priced at US$8,800/ton.

Vietnamese black pepper prices traded at US$5,700/ton for the 500 g/l grade, down 3.51%; US$6,300/ton for the 550 g/l grade, down 9.52%; and white pepper at US$5,800/ton, down 8.62%. The IPC (Indonesian Pepper Association) significantly increased pepper prices in Indonesia and Brazil, leading to a sharp decrease in Vietnam's export pepper prices.

Some industry experts believe that today's sharp fluctuations in pepper prices reflect uncertainty and are heavily speculative in the market.

One reason for the rapid increase in pepper prices is believed to be speculation, as dealers and farmers hoard their stock and sell it in small quantities, driving prices up.

As pepper prices continued to escalate, purchasing businesses faced significant losses; some even had to monitor the market further and temporarily suspend purchases. Low actual transaction volumes despite high prices made it easy for market prices to fall sharply as soon as demand showed signs of weakening. These downward adjustments were necessary to bring the market back into balance.

The downward pressure on domestic pepper prices also stems from the fact that Vietnamese pepper prices traded on the international market have also been sharply adjusted downward in the past week, losing nearly 30% compared to the peak price in mid-June.

*This information is for reference only. Prices may vary depending on the location.

Source: https://congthuong.vn/du-bao-gia-tieu-ngay-2762024-gia-tieu-trong-nuoc-tiep-da-giam-do-dau-328388.html