Pepper price today September 8, 2023, the market sends positive signals, still worried about supply shortage

Pepper prices today in the domestic market continued to increase slightly in some key localities, trading from 70,500 - 73,500 VND/kg.

Pepper price today September 8, 2023, the market sends positive signals, predicting a shortage of supply. (Source: Shutterstock)

Pepper prices today in the domestic market continued to increase slightly in some key localities, trading from 70,500 - 73,500 VND/kg.

Specifically, pepper price today in Gia Lai is at 70,500 VND/kg.

Pepper prices today in Dong Nai province (71,000 VND/kg); Dak Nong, Dak Lak (71,500 VND/kg); Binh Phuoc (72,500 VND/kg) and Ba Ria - Vung Tau are at the highest level of 73,500 VND/kg.

In the world market, at the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Vietnamese black pepper at 3,500 USD/ton for 500 g/l, 3,600 USD/ton for 550 g/l; the price of white pepper at 5,100 USD/ton. IPC continued to adjust down pepper prices in Indonesia when the harvest in some localities is coming to an end.

Thus, in the domestic market, pepper prices recorded an increase for the third consecutive session. According to experts, the reason is that the Chinese market has resumed purchasing activities, along with demand from Europe and the US for orders in the fourth quarter of 2023.

According to the latest data from the General Statistics Office, Vietnam's pepper exports in August reached 16,009 tons, up 4.9% compared to July, but down 13.4% compared to the same period last year.

Export turnover in August reached 60.01 million USD, up 5.4% compared to July but down 20.2% compared to the same period last year. In the first 8 months of 2023, pepper exports reached 183,919 tons, up 14.5% compared to the same period in 2022.

The average export price of Vietnamese pepper in August increased for the third consecutive month, reaching the highest level in the past 10 months at 3,748 USD, up 5% compared to July.

With the export volume equal to the output of the last harvest, the inventory from previous years will be used for export until the next harvest in 2024, which is still 5-6 months away.

This situation is expected to lead to shortages and push prices higher, as inventories from previous years are still held by farmers, traders and financially strong export companies.

In the world, a survey on production and consumption of the world pepper market shows that in Brazil, the harvest has begun in the state of Espirito Santo and the output is expected to decrease compared to last year due to the impact of heavy rain from October last year to February this year.

In parallel, Indonesia's harvest has begun and lasts from July to September, and the country's pepper output in 2023 is expected to be lower than in 2022.

The Indian market concluded its 2023 harvest in April with an expected production of 64,000 tonnes, down 9% from the previous year. As for the upcoming crop, many growing areas received pre-monsoon showers in May, resulting in good flowering. Although there was a deficit in monsoon rains in June, the early July showers have partly offset the shortfall.

In addition, according to the International Pepper Community (IPC), Malaysia's cultivated area in 2023 is estimated to increase by 2% compared to 2022, reaching 8,170 hectares.

Sri Lanka's harvest season ended in July with production forecast to increase slightly from last year and estimated at 25,550 tonnes.

Source