Pepper prices continue to fall due to limited purchasing activities before the holiday

Pepper price forecast August 28, 2024: Pepper price will recover to the level of early August 2024 Pepper price forecast August 29, 2024: Is pepper price forecast to fluctuate further?

Pepper prices are forecast to decline on August 30, 2024. In July, Vietnam's average pepper export price reached 5,958 USD/ton, up 17.8% compared to the previous month and up nearly 60% compared to the same period last year. This is also the highest price achieved in the past 7 years, since March 2017.

In the first 7 months of the year, Vietnam's pepper exports to most major consumer markets increased sharply by double digits compared to the same period last year, except for the Chinese market, which dropped sharply by nearly 85%. Pepper prices in Vietnam's domestic market have decreased from a peak of VND180,000/kg in June to an average of VND150,000/kg in July and around VND139,000 - 140,000/kg in the first 20 days of August. However, the current price is still nearly 75% higher than at the beginning of the year and double the same period last year.

Pepper price forecast August 30, 2024: Pepper prices continue to decrease due to limited purchasing activities before the holiday

In the domestic market, pepper prices today, August 29, 2024, in the Southeast region decreased by 500 - 1,000 VND/kg compared to yesterday, trading around 142,000 - 143,500 VND/kg, the highest purchase price in Dak Lak province is 143,500 VND/kg.

Accordingly, Dak Lak pepper price was purchased at 143,500 VND/kg, down 500 VND/kg compared to yesterday. Chu Se pepper price (Gia Lai) was purchased at 143,000 VND/kg, down 1,000 VND/kg compared to yesterday. Dak Nong pepper price today was recorded at 143,000 VND/kg, unchanged compared to yesterday.

In Binh Phuoc, pepper price today is at 142,000 VND/kg, down 1,000 VND/kg compared to yesterday. In Ba Ria - Vung Tau, it is currently at 142,000 VND/kg, down 1,000 VND/kg compared to yesterday;

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 7,511 USD/ton, and the price of Muntok white pepper at 8,844 USD/ton.

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.

Vietnamese black pepper price is trading at 6,100 USD/ton for 500 g/l, up 4.92%; 550 g/l is at 6,500 USD/ton, up 4.62%; white pepper price is at 8,800 USD/ton, up 3.41%.

Mr. Le Duc Huy, General Director of Dak Lak 2-9 Import-Export Company Limited (Simexco Dak Lak), one of Vietnam's largest pepper exporting enterprises, said that we should be very careful when trading pepper on the exchange because the risk of speculation will increase significantly.

He gave an example of coffee – a commodity that is being traded on world exchanges, which is also being controlled by hedge funds and financial funds despite its large output. Meanwhile, pepper output is not much, so it is easier to be coordinated. If there is intervention by large hedge funds, the price will fluctuate not according to the supply and demand of the real market and the price will fluctuate very strongly.

“Coffee is an example, many times the price of 30,000 - 31,000 VND/kg lasts for 2 - 3 years even when coffee production decreases but still cannot increase. Therefore, we must be very careful in setting the pepper floor. If financial funds intervene, the benefits will not outweigh the harm,” said Mr. Huy.

Domestic pepper price on August 29, 2024