Domestic pepper prices continue to fall sharply?

Pepper price forecast on June 14, 2024 will continue to decrease. After a series of consecutive days of increase, domestic pepper price today decreased sharply to 160,000 VND/kg.

According to some industry experts, the sudden drop in pepper prices is mainly due to excessive speculation in the market in the past 2 weeks, so adjustments are needed to restore balance. Because recently, domestic pepper prices have been largely influenced by speculation and price inflation by some market participants.

Pepper price forecast June 14, 2024: Domestic pepper prices continue to decline sharply

According to the Vietnam Pepper and Spice Association (VPSA), Vietnam imported 16,052 tons of pepper of all kinds in the first 5 months of the year, an increase of 28.4% over the same period in 2023. Of which, Brazil is the largest pepper supplier to Vietnam with 7,106 tons, accounting for 44.3% of the market share. Cambodia ranked second with 5,675 tons, accounting for 35.4% of the market share.

Pepper price today, June 13, 2024, in the Central Highlands and Southeast regions decreased from 16,000 - 21,000 VND/kg in some localities, trading around 158,000 VND/kg, the highest purchase price in Dak Lak, Dak Nong, Ba Ria, Dong Nai provinces is 160,000 VND/kg.

Accordingly, Dak Lak pepper price is purchased at 160,000 VND/kg, down 19,000 VND compared to yesterday's price. Chu Se pepper price (Gia Lai) is currently at 155,000 VND/kg, down 21,000 VND/kg compared to yesterday. Dak Nong pepper price today is recorded at a record price of 160,000 VND/kg, down 20,000 VND/kg compared to yesterday.

Domestic pepper price on June 13 , 2024

Province, city	Unit	Trader purchase price	Increase/decrease compared to yesterday
Chu Se ( Gia Lai )	VND/kg	155,000	-21,000
­­ Dak Lak	VND/kg	160,000	-19,000
Dak Nong	VND/kg	160,000	-20,000
Binh Phuoc	VND/kg	155,000	-21,000
Ba Ria - Vung Tau	VND/kg	160,000	-16,000

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,448 USD/ton (down 3 USD); the price of Brazilian black pepper ASTA 570 at 8,500 USD/ton (up 3.53%); the price of Kuching black pepper (Malaysia) ASTA remained at 4,900 USD/ton.

Muntok white pepper price is 8,420 USD/ton (up 11.82%); Malaysian ASTA white pepper price remains at 7,300 USD/ton.

Vietnamese black pepper prices remain high, trading at 6,500 USD/ton for 500 g/l; 6,700 USD/ton for 550 g/l (up 11.94%); white pepper price at 9,500 USD/ton (up 15.79%).

With pepper prices now double that of the beginning of this year, many pepper growers have begun to consider selling part of the previous season's pepper, which has been stored in warehouses.

Pepper prices in the world and in Vietnam have increased sharply because Brazil and Vietnam, the two countries that determine global supply, are experiencing a decline in output due to El Nino causing drought. Supply in Indonesia, India, Malaysia, and Sri Lanka is also limited. According to assessments, in the long term, in the next 3-5 years, the amount of pepper produced will not be able to meet the world's consumption demand.

Other factors besides supply and demand that have pushed pepper prices up include ocean freight rates. The global container index, which represents spot container freight rates on major international shipping routes, has returned to its peak during the Covid-19 pandemic.

Shipping market research firm Linerlytica said that ports in Southeast Asia are becoming the “most serious bottleneck” for the world’s maritime transport, with 26% of global container capacity stuck in the region.

This has been embedded in the cost of products, causing goods to increase in recent times. In addition, domestic speculation is also considered one of the main causes of the current price increase.

Indian domestic and international pepper prices continued to rise last week. Meanwhile, Sri Lankan domestic pepper prices have been on the rise since last month.

In Southeast Asia, only Indonesian black pepper prices have increased since last week. Meanwhile, white pepper prices have remained stable. In Malaysia, domestic and export pepper prices have remained stable and unchanged.

In addition to the sharp increase in the price of Brazilian black pepper, the price of Chinese white pepper also increased. The reason for the increase in the price of Chinese pepper in Hainan is due to low production forecasts as well as domestic speculation. Meanwhile, the price of Cambodian black pepper is stable and unchanged.

In the US market, black and white pepper prices also increased sharply due to limited supply as well as buying pressure from Europe and China.

Information for reference only. Prices may vary by location.

Source: https://congthuong.vn/du-bao-gia-tieu-ngay-1462024-gia-tieu-trong-nuoc-tiep-da-giam-manh-326028.html