Risk of supply shortage, new peak set

Pepper price today, September 11, 2024, in the Southeast region, key areas increased from 1,000 - 2,500 VND/kg, trading around 152,000 - 155,500 VND/kg, the highest purchase price in Dak Lak province is 155,500 VND/kg.

Pepper price today September 11: Risk of supply shortage, new peak set

Accordingly, Dak Lak pepper price is purchased at 155,500 VND/kg, an increase of 2,500 VND/kg compared to yesterday. Chu Se pepper price (Gia Lai) is purchased at 153,000 VND/kg, an increase of 1,000 VND/kg compared to yesterday. Dak Nong pepper price today is at 155,000 VND/kg, an increase of 2,000 VND/kg compared to yesterday.

In the Southeast region, pepper prices today increased by VND 2,000/kg compared to yesterday. Specifically, in Binh Phuoc, pepper prices today remained at VND 152,000/kg. In Ba Ria - Vung Tau, it increased to VND 155,000/kg, an increase of VND 2,000/kg compared to yesterday.

Thus, pepper price today increased from 1,000 - 2,500 VND/kg, fluctuating in the price range of 152,000 - 155,500 VND/kg, the highest price in pepper growing area in Dak Lak is 155,500 VND/kg.

World pepper price today

Update on world pepper prices from the International Pepper Association (IPC), at the end of the most recent trading session, IPC listed the price of Indonesian Lampung black pepper at 7,542 USD/ton, the price of Muntok white pepper at 9,096 USD/ton, down 0.01%.

The price of Brazilian ASTA 570 black pepper remained at $7,400/ton, down 1.35%. The price of Malaysian ASTA black pepper was at $8,800/ton; the price of this country's ASTA white pepper reached $10,900/ton.

Vietnam's black pepper price is stable at 6,600 USD/ton for 500 g/l; 550 g/l at 7,000 USD/ton; white pepper price at 9,300 USD/ton.

According to a report by Phuc Thinh Import-Export Investment Joint Stock Company (PTEXIM), last week, pepper prices increased from VND156,000/kg to VND159,000/kg, equivalent to an increase of 1.9%.

Demand in markets such as the EU, Middle East and Asian countries was very good, while demand from China was subdued compared to last week after strong pepper prices.

However, on weekends, Saturdays and Sundays, demand from China spikes, making the market more vibrant.

Freight rates to the US have dropped significantly, by around $2,000 per 40-foot container over the past week. Other routes such as the EU, Asia and Africa have remained stable, with little change.

The VND continued to appreciate by about 1%, leading to an increase in the price of pepper converted to USD. The VND is expected to continue to appreciate as the USD may weaken due to the Fed's interest rate cut, PTEXIM said.

Meanwhile, the global pepper market is still facing a potential supply shortage. Vietnam, the world’s largest pepper producer and exporter, exported 183,756 tons of pepper in the first eight months of the year, while this year’s harvest output was only 170,000 tons.

According to the Vietnam Pepper and Spice Association (VPSA), the inventory from the 2023 crop carried over plus the import volume in 2024 of about 40,000 - 45,000 tons (including informal imports) shows that the export source until the end of the year will be lower than every year and until March 2025 when the 2025 crop is expected to be harvested.

In Brazil, under ideal conditions, the harvest in southern Brazil (Esperito Santo and Bahia) could easily exceed 100,000 tonnes. However, due to unusual weather conditions, some forecasts suggest that this year’s harvest will only reach around 65,000 tonnes.

Domestic pepper price on September 11 , 2024