Pepper prices are forecast to remain high on September 17, 2024. The news of interest rate cuts has weakened the USD over time, helping commodity markets to flourish, including pepper. Globally, the International Pepper Community also noted that no country reported a decrease in pepper prices last week.
Along with that, increased purchasing power from the markets, and concerns about supply are still two constant reasons expected to continue to boost pepper prices this week. Experts predict that if the upward momentum continues as it has since the beginning of the month, the domestic market this week could reach 160,000 VND/kg.
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| Pepper price forecast September 17, 2024: Pepper prices continue to increase due to high market demand |
By the end of August, Vietnam exported 183,756 tons of pepper of all kinds, of which black pepper reached 162,721 tons and white pepper reached 21,035 tons. Total pepper export turnover reached 881.2 million USD (of which black pepper reached 754.1 million USD and white pepper reached 127.1 million USD). The amount of pepper exported has exceeded last year's output. Meanwhile, there are still 4 months left until the harvest. This raises concerns about supply in the last months of the year from Vietnam.
In the domestic market, pepper prices today, September 16, 2024, in key regions maintained a sideways trend compared to yesterday, trading around 152,000 - 156,000 VND/kg, the highest purchase price in Dak Nong and Dak Lak provinces was 156,000 VND/kg.
Accordingly, the price of Dak Lak pepper was purchased at 156,000 VND/kg, stable compared to yesterday. The price of Chu Se pepper (Gia Lai) was purchased at 154,000 VND/kg, stable compared to yesterday.
In Binh Phuoc, pepper price today remains at 152,000 VND/kg. In Ba Ria - Vung Tau, it is at 155,000 VND/kg, stable compared to yesterday.
At world pepper prices, updated 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 7,562 USD/ton, and the price of Muntok white pepper at 9,121 USD/ton.
The price of Brazilian ASTA 570 black pepper remained at $7,400/ton. The price of Malaysian ASTA black pepper was at $8,800/ton; the price of this country's ASTA white pepper reached $10,900/ton.
Vietnam black pepper price is traded at 6,800 USD/ton for 500 g/l; 550 g/l at 7,100 USD/ton; white pepper price at 10,150 USD/ton.
In recent weeks, pepper prices have continuously increased due to high market demand, especially China has returned to buying large volumes of 3,000 - 4,000 tons, after a long period of reduced purchases, to compensate for the shortage of raw materials due to expected global output reduction in the coming years.
Meanwhile, recent reports suggest that global supplies are on a downward trend. Drought has severely impacted this year’s harvests in Brazil and Cambodia. In Vietnam, output is forecast to fall 10% to 170,000 tonnes in 2024, while exports in the first eight months have already exceeded that figure.
It is forecasted that the 2025 pepper crop will be harvested almost entirely in February, with many regions extending to March and April, 1 to 2 months later than previous years due to the impact of prolonged drought.
The International Pepper Community (IPC) said that the pepper market in the second week of September showed a positive outlook, with no market recording a decrease. After being reported stable for the past two weeks, both domestic and international Indian pepper prices are on an upward trend this week.
Since early September, demand from China has returned with immediate orders in large quantities of 3,000 – 4,000 tonnes, to make up for the shortage of raw materials as global pepper production is expected to continue to decline in the next few years.
The Middle East market also has a relatively large demand for orders, after selling off cheaper import inventories earlier this year.
*Information for reference only. Prices may vary depending on time and location.
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