What is the reason for the simultaneous decline in pepper prices?

Pepper price today, November 7, 2024, in the Southeast region decreased sharply by 4,500 - 5,000 VND/kg in most key regions, trading around 135,000 - 136,000 VND/kg; the highest purchase price in Dak Nong and Dak Lak provinces.

Accordingly, Dak Lak pepper price was purchased at 136,000 VND/kg, a sharp decrease of 5,000 VND/kg compared to yesterday. Chu Se pepper price (Gia Lai) was purchased at 135,500 VND/kg, a sharp decrease of 4,500 VND/kg compared to yesterday. Dak Nong pepper price today was recorded at 136,000 VND/kg, a sharp decrease of 5,000 VND/kg compared to yesterday.

Pepper price today 11/7/2024: What is the reason for the simultaneous plummet in pepper prices?

In the Southeast region, pepper prices today fluctuated compared to yesterday. Specifically, in Binh Phuoc, pepper prices today are at 135,000 VND/kg, down sharply by 5,000 VND/kg compared to yesterday. In Ba Ria - Vung Tau, it is currently at 135,500 VND/kg, down 4,500 VND/kg compared to yesterday.

Thus, domestic pepper prices today fell sharply in key growing areas. The highest pepper price was at 136,000 VND/kg.

World pepper price today

Update on world pepper prices from the International Pepper Community (IPC), at the end of the most recent trading session, IPC listed the price of Indonesian Lampung black pepper at 6,634 USD/ton, down 0.47% compared to yesterday, and the price of Muntok white pepper at 9,082 USD/ton, down 0.47% compared to yesterday.

The price of Brazilian ASTA 570 black pepper was at $6,300/ton, down 1.59%. The price of Malaysian ASTA black pepper was at $8,500/ton; the price of this country's ASTA white pepper reached $11,000/ton.

In particular, the price of Vietnamese black pepper is stable at 6,500 USD/ton for 500 g/l; 550 g/l at 6,800 USD/ton; and white pepper price at 9,500 USD/ton.

Recently, the market has been assessed to have pushed prices higher than the actual supply and demand. Experts say that pepper prices are being adjusted to their true value at the present time.

Cash flow into coffee and weak demand are factors hindering the growth of pepper. The market is at risk of breaking the 140,000 VND/kg mark.

In the international market, Southeast Asian countries are also reducing pepper prices in the context of a stronger USD. The US presidential election with the victory of Mr. Donald Trump caused the USD exchange rate to skyrocket, causing pepper prices to fall even more sharply. Currently, the global pepper market is valued at 5.43 billion USD, forecast to grow by an average of more than 20% in the period 2024 - 2032.

Recently, the selling pressure on the market has increased as the coffee harvest season begins. Due to the large capital needed for the coffee crop, many farmers and agents have switched to selling pepper, putting pressure on domestic pepper prices.

Globally, Southeast Asian countries are also reducing pepper prices amid the rising US dollar.

Ten years ago, for the first time, Vietnam's pepper export turnover set a record of 1.2 billion USD. However, farmers in many provinces have massively expanded pepper growing areas, even in areas unsuitable for this crop, causing output to increase sharply, supply to exceed demand, leading to continuous sharp price drops.

In the first 9 months of 2024, for the first time in 10 years, pepper exports reached the 1 billion USD mark, and may set a new record, the highest ever of 1.3 billion USD by the end of 2024. Currently, the global pepper market size is valued at 5.43 billion USD, forecast to grow by an average of more than 20% in the period 2024 - 2032.

Domestic pepper price on November 7, 2024