Continued strong fluctuations, waiting for a price correction

Domestic pepper prices today

Today, August 5th, 2024, pepper prices in the Southeast region decreased by 1,000 VND/kg in some localities compared to yesterday, trading around 145,000 - 146,000 VND/kg. The highest purchase price was in Dak Lak, Dak Nong , and Ba Ria - Vung Tau provinces at 146,000 VND/kg.

Specifically, the price of pepper in Dak Lak is being purchased at 146,000 VND/kg, a decrease of 1,000 VND/kg compared to yesterday. The price of pepper in Chu Se (Gia Lai) is being purchased at 145,000 VND/kg, a decrease of 1,000 VND compared to yesterday. The price of pepper in Dak Nong today is recorded at 146,000 VND/kg, a decrease of 1,000 VND/kg compared to yesterday.

Pepper prices today, August 5, 2024: Continued strong fluctuations, awaiting a price correction.

In the Southeast region, pepper prices today decreased by 1,000 VND/kg compared to yesterday. Specifically, in Ba Ria - Vung Tau, the price is currently at 146,000 VND/kg, down 1,000 VND/kg from yesterday; in Binh Phuoc , the price remains at 146,000 VND/kg, down 1,000 VND/kg from yesterday.

Thus, today's pepper prices (August 5th) decreased by 1,000 VND/kg in some key growing areas, reaching a high of 146,000 VND, fluctuating between 145,000 and 146,000 VND/kg.

At the end of July 2024, the average price of pepper in the domestic market fluctuated around 148,000 – 149,000 VND/kg. Thus, the price of pepper on the last day of the month failed to break through the resistance level of 150,000 VND/kg.

The average domestic pepper price in July reached VND 150,000/kg, up 82.9% compared to January and up 120.6% compared to the same period in 2023. The average black pepper price in the first 7 months of 2024 increased by 66.5% compared to 2023. Shortage of supply due to reduced harvest output in Vietnam and Brazil is the main reason for the increase in pepper prices since the beginning of the year.

Exports from major global producers have shown mixed patterns. In the first half of 2024, the world’s top two exporters, Vietnam and Brazil, fell by 6.8% and 6%, respectively. In the same direction, Malaysia’s exports also fell by 8.1%, while Indonesia and India’s exports increased by 48.3% and 34.1%.

Compared to the same period in 2023, the first 6 months of 2024, the average FOB price of black pepper and white pepper in most major producing countries increased sharply, except for India. Specifically, the average FOB price of black pepper increased by 27% and the average FOB price of white pepper increased by 14% compared to the same period last year. The strongest increase was recorded in Brazilian black pepper, followed by Vietnam and Indonesia.

Domestic pepper prices on August 5 , 2024

World pepper prices today

According to the International Pepper Association (IPC), at the close of the most recent trading session, the IPC listed Indonesian Lampung black pepper at US$7,176/ton and Muntok white pepper at US$8,793/ton.

The price of Brazilian ASTA 570 black pepper is at 6,750 USD/ton. The price of Malaysian ASTA black pepper is at 8,500 USD/ton; the price of this country's ASTA white pepper is at 10,400 USD/ton.

Vietnamese black pepper prices remained consistently high, trading at US$6,000/ton for the 500 g/l variety; US$6,600/ton for the 550 g/l variety; and white pepper at US$8,800/ton.

The seasonal situation and pepper production in various countries will strongly impact domestic pepper prices. According to the Vietnam Pepper and Spice Association, Brazil is continuing its pepper harvest in the Espírito Santo region and in November in the Para region; it is estimated that the country will harvest an additional 60,000 tons. Climate change (La Nina) will affect Brazilian pepper production in the coming months.

According to some farmers in the Espirito Santos region, the 2024 harvest yield may be 25-30% lower due to the heat causing almost all of the first flush of flowers to fall off, and the fruit set rate on the second and third flushes of flowers is quite low, so it is expected to only reach about 70% compared to last year. Overall, the national yield in 2024 may decrease by 20-25% compared to 2023. The average export price of Brazilian pepper in the first six months of the year reached US$3,810/ton, an increase of 29.3% compared to the same period last year, with the export price in June increasing by 31.1% compared to January 2024.

Indonesia is expected to harvest in August (later than usual, which is July), but the yield is not promising. In the first six months of 2024, the average FOB price of Indonesian black pepper increased continuously since February, rising 16% compared to Q2 2023 and 30% compared to Q1 2023. Similarly, the average FOB price of Indonesian white pepper also increased by 9% and 5% respectively compared to Q1 2023 and Q2 2023.

The main pepper harvest in Sri Lanka will end in July. The forecast for Sri Lanka's 2024 pepper crop is no less than 25,000 tons and could reach 27,000 tons thanks to favorable weather conditions. The main export market for Sri Lankan pepper is India, as Sri Lankan pepper has a high Piperin content suitable for the production of pepper oil and oleoresin.

The overall picture of the global pepper industry still shows that the market is facing a supply shortage. This will push up pepper prices both domestically and internationally. However, the extent of the increase and the timing of this rise remain questions.

In response to market developments, several countries have already developed action plans. Meanwhile, Brazil already has three sterilized pepper processing plants and is building two more, scheduled for completion in 2025, to boost processing and improve quality. In the future, Brazilian pepper will be more competitive with Vietnamese pepper.

*Information for reference only. Prices may vary depending on time and location.

Source: https://congthuong.vn/gia-tieu-hom-nay-582024-tiep-tiep-bien-dong-manh-cho-doi-mot-nhip-dieu-chinh-gia-336837.html