Pepper prices are forecast to fluctuate further?

Pepper price forecast August 27, 2024: Is there expected to be a prolonged increase cycle at the end of the year? Pepper price forecast August 28, 2024: Pepper prices will recover to the level of early August 2024

Pepper prices are forecast to decline on August 29, 2024. The Vietnam Pepper and Spice Association believes that the purchasing power of the Chinese market will not show signs of improvement until the end of the year. However, the world's demand for pepper is increasing and the EU region is still a large consumer market for Vietnamese pepper.

The pepper processing capacity of Vietnamese enterprises is very large, reaching 140,000 tons/year, which is an opportunity to help the Vietnamese pepper industry develop in the coming time.

In the domestic market, pepper prices today, August 28, 2024, in the Southeast region are stable compared to yesterday, trading around 143,000 - 144,000 VND/kg, the highest purchase price in Dak Lak, Dak Nong, Gia Lai provinces is 144,000 VND/kg.

Accordingly, the price of Dak Lak pepper was purchased at 144,000 VND/kg, remaining unchanged compared to yesterday. The price of Chu Se pepper (Gia Lai) was purchased at 144,000 VND/kg, an increase of 500 VND/kg compared to yesterday. The price of Dak Nong pepper today was recorded at 144,000 VND/kg, unchanged compared to yesterday.

Pepper price forecast August 29, 2024: Is pepper price forecast to fluctuate further?

In Binh Phuoc, pepper price today is at 143,000 VND/kg, unchanged from yesterday. In Ba Ria - Vung Tau, it is currently at 143,000 VND/kg, remaining stable compared to yesterday;

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 7,511 USD/ton, down 0.84% compared to yesterday, the price of Muntok white pepper reached 8,844 USD/ton, down 0.84%.

Brazilian ASTA 570 black pepper prices remained stable at USD 6,450/ton. Malaysian ASTA black pepper prices remained stable at USD 8,500/ton; the country’s ASTA white pepper prices reached USD 10,400/ton.

Vietnam black pepper price is traded at 5,800 USD/ton for 500 g/l; 550 g/l at 6,200 USD/ton; white pepper price at 8,500 USD/ton.

Pepper prices have recently returned to an upward trend after about two months of downward adjustment. As of August 27, pepper prices were trading at VND144,000/kg, recovering from a two-month low set in mid-August of VND137,000/kg.

Looking at the broader picture, pepper prices have skyrocketed this year, with current levels doubling since the beginning of the year. At its peak in June, pepper prices reached a near eight-year high of VND180,000/kg.

Mr. Ho Tri Nhuan, Director of Gohan Company, said that import customers are the ones who benefit the most while export businesses suffer great losses.

“In May and June, the export volume increased dramatically. This was also the time when pepper prices peaked at VND170,000 - 180,000/kg. However, the export price was only about VND100,000/kg. Businesses were forced to buy at high prices and sell at low prices. Meanwhile, importers sold at VND140,000/kg in the home country,” Mr. Nhuan shared.

The cause of this situation comes not only from the decline in supply (affected by weather and people's crop conversion trends), but also from speculators.

According to Mr. Nhuan, many people have been holding pepper since the beginning of the year and have taken profits, but then they bought it again at the peak price. Overall, in the market, there are more people who lose than those who make a profit. Those who make a profit only make about 5,000 VND/kg, but those who lose are up to 30,000 - 40,000 VND/kg.

Domestic pepper price on August 28, 2024