| Pepper price forecast June 20, 2024: Will domestic pepper prices continue to decline? Pepper price forecast June 21, 2024: Pepper prices increase slightly in the Southeast? |
Pepper prices are forecast to continue to increase on June 22, 2024, as supply from farmers to the market is very “drop by drop”. Estimates show that the country only has about 60,000 tons of pepper left to export from now until the new crop year.
The Vietnam Pepper and Spice Association (VPSA) also said that the pepper supply among the people is still available, but instead of selling massively like previous years, the amount of goods released to the market is currently only "dripping" to wait and see in the context of the price of this item on the rise.
As for businesses, they are facing difficulties in trading and selling. Because the amount of goods sold on the market is not abundant, while businesses have signed contracts in advance with fixed prices and now the prices are too high, they cannot buy the goods.
Regarding the supply issue, Mr. Le Duc Huy - General Director of Dak Lak 2/9 Import-Export Company Limited (Simexco Dak Lak) commented that in the coming months, export volume may decrease sharply because there is only a small amount of inventory left.
“In the past four years, no one has grown more pepper, so the area has shrunk, leading to a decrease in output. With the current drought situation, increasing pepper output for next year is also a big challenge,” Mr. Le Duc Huy warned.
In addition, domestic pepper prices on June 21, 2024, in the Southeast region increased slightly by 1,000 VND/kg in some localities, trading around 157,600 VND/kg, the highest purchase price in Dak Nong and Dak Lak provinces was 160,000 VND/kg.
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| Pepper price forecast June 22, 2024: Pepper price is bouncing back |
Accordingly, Dak Lak pepper price is purchased at 160,000 VND/kg. Chu Se pepper price (Gia Lai) is currently at 156,000 VND/kg. Dak Nong pepper price today is recorded at 160,000 VND/kg, unchanged from yesterday.
In the Southeast region, pepper prices today increased by VND 1,000/kg. Specifically, in Ba Ria - Vung Tau, it increased by VND 1,000/kg to VND 157,000/kg; in Binh Phuoc, pepper prices reached VND 155,000/kg.
Domestic pepper price on June 21 , 2024
Province, city | Unit | Trader purchase price | Increase/decrease compared to yesterday |
Chu Se (Gia Lai) | VND/kg | 156,000 | – |
Dak Lak | VND/kg | 160,000 | – |
Dak Nong | VND/kg | 160,000- | |
Binh Phuoc | VND/kg | 155,000 | – |
Ba Ria - Vung Tau | VND/kg | 157,000 | +1,000 |
World pepper price Today
At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,418 USD/ton; the price of Brazilian black pepper ASTA 570 at 7,600 USD/ton (down 3.95%); the price of Kuching black pepper (Malaysia) ASTA remained at 7,500 USD/ton (up sharply by 34.67%).
Muntok white pepper price is 8,377 USD/ton; Malaysian ASTA white pepper price increased to 8,800 USD/ton (a sharp increase of 17.05%).
Vietnam's black pepper price is trading at 7,800 USD/ton; 550 g/l type is at 8,000 USD/ton; white pepper price is at 12,000 USD/ton.
According to preliminary statistics from the Vietnam Pepper and Spice Association (VPSA), in the first 16 days of June 2024, Vietnam exported 16,211 tons of pepper, of which 14,347 tons were black pepper and 1,864 tons were white pepper, with a total export turnover of 77.8 million USD. On the other hand, Vietnam imported 1,357 tons, with a total import turnover of 6.6 million USD.
According to statistics from the General Department of Customs, by the end of May 2024, Vietnam had exported nearly 110,000 tons of pepper of all kinds, earning 469 million USD. Compared to the same period last year, pepper exports decreased by 16.8% in volume but increased by 15.4% in value. If we exclude the inventory carried over from last year, our country still has about 60,000 tons of pepper to export in the remaining months of the year.
Experts say that with the current hot weather and growing area, pepper supply next year will still be a challenge.
According to a representative of PTEXIM Corp, the inventory level of intermediary traders, an important link connecting farmers with exporters, is at its lowest level in many years.
In particular, some dealers have faced shortages when they sold out and could not buy back when the market increased rapidly. At the same time, the capital cost for importing pepper has become more expensive, making the purchase and storage of inventory require large capital.
PTEXIM Corp believes that this situation will cause pepper prices to continue to increase in the coming time.
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