Domestic pepper prices are plummeting?

The forecast for pepper prices on June 19, 2024, shows a widespread downward adjustment. According to Mr. Phan Minh Thong, Chairman of Phuc Sinh Group, when pepper prices reached record highs, speculators began aggressively selling, causing prices to fall. However, Mr. Thong still believes that pepper prices are unlikely to fall significantly due to a decrease in supply this year.

Pepper price forecast for June 19, 2024: Will domestic pepper prices unexpectedly plummet?

Mr. Le Viet Anh, General Secretary of VPSA, assessed that determining the exact cause of pepper price fluctuations is very difficult. However, he emphasized that sharp increases and decreases in pepper prices can occur when a large number of investors buy for speculation.

" Farmers often hoard their produce when prices rise, but businesses don't buy it, leading to a drop in prices when they peak ," Mr. Viet Anh assessed.

Forecasts suggest that domestic pepper prices are unlikely to fall below 100,000 VND/kg, especially since the harvest season ended in April and the planted area is shrinking to make way for industrial zones. Mr. Viet Anh predicts that domestic pepper prices will soon rise again, not only in Vietnam but also worldwide .

After reaching a record high of 180,000 VND/kg early last week, domestic pepper prices then experienced sudden and sharp fluctuations, with increases and decreases ranging from 6,000 to 21,000 VND/kg, adjusting to around 161,000 VND/kg today.

Domestic and international pepper prices in Vietnam have continued to rise since the beginning of May, due to low local inventories.

According to the International Pepper Community (IPC), the market last week showed a fairly positive reaction, with no producing country recording a decrease.

Average inventory levels held by middlemen are very low, the lowest in recent years, due to the increasingly expensive capital costs for black pepper. Purchasing and storing inventory has become difficult and requires significant capital, resulting in low stock levels.

Experts believe that the domestic market will continue to adjust, heavily reliant on speculation.

The Vietnam Pepper and Spice Association has also announced the difficulties that pepper exporting businesses are facing. High pepper prices are making it difficult for them to purchase goods, and rising transportation costs are adding to the burden.

Countries like Brazil and Indonesia are projected to have low-yielding crops, helping to maintain Vietnam's advantage in the international pepper market.

Today, June 18, 2024, pepper prices in the Central Highlands and Southeast regions decreased across a wide area in some localities, trading around 159,200 VND/kg, with the highest purchase price in Dak Nong province at 161,000 VND/kg.

Accordingly, the price of pepper in Dak Lak is being purchased at 160,000 VND/kg, a decrease of 10,000 VND/kg. The price of pepper in Chu Se (Gia Lai) is currently at 158,000 VND/kg, a decrease of 10,000 VND/kg compared to yesterday. The price of pepper in Dak Nong today is recorded at 161,000 VND/kg, a decrease of 9,000 VND/kg compared to yesterday.

In the Southeast region, pepper prices decreased by 10,000 VND/kg today. Specifically, in Ba Ria - Vung Tau, the price dropped to 159,000 VND/kg, a decrease of 10,000 VND/kg; in Binh Phuoc, the price reached 158,000 VND/kg, also a decrease of 10,000 VND/kg.

Domestic pepper prices on June 18 , 2024

Provinces and cities	Unit	The price offered by traders.	Increase/decrease compared to yesterday
Chu Se (Gia Lai)	VND/kg	158,000	-10,000
­­ Dak Lak	VND/kg	160,000	- 10,000
Boeing Nong	VND/kg	161,000	- 9,000
Binh Phuoc	VND/kg	158,000	- 10,000
Ba Ria - Vung Tau	VND/kg	159,000	- 10,000

At the close of the most recent trading session, the International Pepper Community (IPC) listed Lampung black pepper (Indonesia) at $6,452/ton; Brazilian ASTA 570 black pepper at $8,200/ton; and Kuching (Malaysia) ASTA black pepper at $4,900/ton.

Muntok white pepper is priced at US$8,422/ton; Malaysian ASTA white pepper remains at US$7,300/ton.

Prices for Vietnamese black pepper have all increased sharply, reaching US$7,800/ton (up 6.84%); the 550 g/l variety is at US$8,000/ton (up 2.56%); and white pepper is at US$11,300/ton.

The International Pepper Community further reported that the market showed a fairly positive reaction last week, with no producing country recording a decrease.

Specifically, in South Asia, Indian pepper prices, both domestically and internationally, continued to rise from last month. Meanwhile, Sri Lankan domestic pepper prices have continued to increase over the past five weeks.

In Southeast Asia, Indonesian domestic and export pepper prices have risen since last week due to low market inventories.

Only domestic pepper prices in Malaysia recorded an increase this week. Meanwhile, export prices remained stable and unchanged.

Vietnamese pepper prices, both domestically and internationally, have continued to rise since the beginning of May. This increase is due to low local inventories as well as reduced harvests in Vietnam, according to Namagro.

Meanwhile, prices of Brazilian black pepper and Chinese white pepper continued to rise from last week. The increase in pepper prices in Brazil is attributed to a crop failure in Espirito Santos, Brazil. Cambodian black pepper prices, however, remained stable and unchanged.

Countries like Brazil and Indonesia are projected to have low-yield harvests, starting around August. This helps maintain Vietnam's advantage in the international market, as supply is currently dependent on domestic export companies.

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

Source: https://congthuong.vn/du-bao-gia-tieu-ngay-1962024-gia-tieu-trong-nuoc-tut-doc-326830.html