Domestic pepper prices continue to fall, why?

Pepper price forecast for June 27, 2024 continues to decline sharply after days of hot increase. Earlier this week, the domestic pepper market had a second sharp drop since the beginning of the month. Along with that, the export pepper price has been adjusted down continuously, affecting the domestic market.

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

Thus, in the past 2 days, pepper prices have lost nearly 10% but in general, they are still at the peak of the past 8 years. Compared to the beginning of the year, pepper prices have now doubled and increased 2.2 times compared to the same period last year.

Commenting on the recent price fluctuations of the market, the Vietnam Pepper and Spice Association said that the sharp decline in the first day of the week may have come from speculative factors of market participants. In particular, agents who keep farmers' goods are now turning to squeeze prices to force farmers to close their goods early.

Pepper price forecast June 27, 2024: Domestic pepper prices continue to decline

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

Accordingly, Dak Lak pepper price is purchased at 146,000 VND/kg. Chu Se pepper price (Gia Lai) is currently at 145,000 VND/kg. Dak Nong pepper price 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, it decreased to 145,000 VND/kg; in Binh Phuoc , pepper prices reached 145,000 VND/kg.

Domestic pepper price on June 26 , 2024

Province, city	Unit	Trader purchase price	Increase/decrease compared to yesterday
Chu Se (Gia Lai)	VND/kg	145,000	–
­­ Dak Lak	VND/kg	146,000	–
Dak Nong	VND/kg	145,000	–
Binh Phuoc	VND/kg	145,000	– 1,000
Ba Ria - Vung Tau	VND/kg	145,000	– 1,000

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

Muntok white pepper price is 9,056 USD/ton, up 0.32%; Malaysian ASTA white pepper price is at 8,800 USD/ton.

Vietnam's black pepper price is trading at 5,700 USD/ton for 500 g/l, down 3.51%; 550 g/l is at 6,300 USD/ton, down 9.52%; white pepper price is at 5,800 USD/ton, down 8.62%. IPC sharply increased pepper prices in Indonesia and Brazil, sharply reducing Vietnam's pepper export prices.

Some industry experts assess that the strong fluctuations in pepper prices today reflect uncertainty and speculation in the market.

Some people think that the rapid increase in pepper prices is partly due to speculation, as agents and pepper growers hoard their goods and sell them "dripping" causing prices to rise.

As pepper prices continue to rise, purchasing businesses are under pressure to suffer huge losses; some businesses have even had to monitor the market and temporarily stop purchasing. The low actual trading volume despite high prices has caused the market price level to easily drop sharply as soon as demand shows signs of weakening. Adjustments are necessary to make the market more balanced.

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

* Information for reference only. Prices may vary by location.

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