Scarce supply, irregular market, no driving force to break out

Pepper prices today, July 23, 2024, in the domestic market are stable in key localities, trading from 145,000 - 146,000 VND/kg.

Pepper price today July 23, 2024: Short supply, irregular market, no driving force to break out. (Source: Times of India)

Pepper price today, July 23, 2024, in the domestic market is stable in key localities, trading from 145,000 - 146,000 VND/kg.

Specifically, pepper price today in Gia Lai is at 145,000 VND/kg.

Pepper prices today in the provinces of Dong Nai (145,000 VND/kg); Dak Lak (146,000 VND/kg); Dak Nong (146,000 VND/kg); Ba Ria - Vung Tau (145,000 VND/kg) and Binh Phuoc (145,000 VND/kg).

Thus, domestic pepper prices today are stable in key localities. The highest pepper price is at 146,000 VND/kg.

According to the Vietnam Pepper and Spice Association (VPSA), as of July 15, 2024, Vietnam's total pepper export turnover reached 690.7 million USD and imports reached 74.1 million USD (mainly raw materials). Thereby, the whole industry had a trade surplus of 616.6 million USD.

In the domestic market, in recent days, pepper prices have fluctuated around 150,000 VND/kg, twice as high as in 2023.

VPSA commented that the law of pepper prices this year is not the same as previous years. The reason is that at this time there is a shortage of supply because Vietnam (a country that supplies 50% of the global pepper) ended its crop in March, while Brazil has not yet entered its crop, and Indonesia and Malaysia are in their main crop around July.

With high growth in the first 6 months of the year, combined with export prices continuing to be high due to supply being lower than demand, it is likely that Vietnam's pepper exports this year will reach over 1 billion USD, thereby bringing pepper back into the billion-dollar industry group for the first time since 2017.

Commenting on pepper prices this week, experts said they are still in a tug-of-war situation as there is no additional driving force to help the market break out.

The market is waiting for information from the VPSA Conference summarizing the production and import-export situation of the spice industry in the first 6 months of 2024 and production and business orientation for the last 6 months of 2024, taking place at the end of this month.

The Association is expected to announce a panoramic picture of the current pepper industry, including the output of the just-ended crop.

This will be important information to be awaited at this time. Because previously, the Association had only forecast that the output of the last crop would decrease by 10-15%, to about 170,000 tons. But then some sources of information assessed that the output of the 2023-2024 crop would not decrease that much. It could even increase again next year.

Based on the Association's reliable data, businesses, traders and farmers will make calculations for the market in the following months.

Vietnam, the world's leading pepper producer and exporter, is the largest customer of Brazil's pepper industry. In the first half of this year, Brazil exported 5,910 tons of pepper to Vietnam, down 21.5% compared to the same period last year and accounting for nearly 16% of the South American country's total pepper exports.

Brazil's pepper export price to Vietnam averaged $3,488 per ton, up 19% compared to the first half of last year, but the lowest among the top 15 pepper importing countries from Brazil. At the same time, it was significantly lower than Vietnam's average export price of $4,454 per ton to the international market during the same period.

Source: https://baoquocte.vn/gia-tieu-hom-nay-2372024-khan-nguon-cung-thi-truong-khong-theo-quy-luat-chua-xuat-hien-luc-day-de-but-pha-279636.html