Will domestic pepper prices continue to fall sharply?

Pepper price forecast on June 25, 2024 continues to decline sharply after days of continuous increase. Since the beginning of June 2024, pepper prices have changed continuously in a very short period of time and without following any rules, causing headaches for market participants. Immediately after the price increased sharply and reached 180,000 VND/kg, selling pressure at the peak caused the market to turn around and decline sharply in a very short time.

The market has now recovered and fluctuated within the range of 160,000 VND/kg. This is an unimaginably high price when entering the new crop, and is also a reasonable threshold that market participants can accept at the present time.

Pepper price forecast June 25, 2024: Will domestic pepper prices continue to decline sharply?

One of the main reasons driving the increase is that businesses lack goods for export, so they increase purchases in a short period of time, causing prices to increase dramatically. Experts say that the possibility of speculative activities during this period cannot be ruled out.

Similarly, the large amount of pepper smuggled into the market by businesses and speculators at the time when prices peaked was one of the reasons for the shocking price drop.

In the domestic market, pepper prices today, June 24, 2024, in the Southeast region, decreased sharply from 4,000 - 4,500 VND/kg in all localities, trading around 155,000 VND/kg, the highest purchase price in Dak Nong province was 156,000 VND/kg.

Accordingly, Dak Lak pepper price is purchased at 155,000 VND/kg. Chu Se pepper price (Gia Lai) is currently at 152,000 VND/kg. Dak Nong pepper price today is recorded at 156,000 VND/kg.

In the Southeast region, pepper prices today dropped sharply from 4,000 - 4,500 VND/kg. Specifically, in Ba Ria - Vung Tau, it dropped to 153,500 VND/kg; in Binh Phuoc , pepper prices reached 152,000 VND/kg.

Domestic pepper price on June 24 , 2024

Province, city	Unit	Trader purchase price	Increase/decrease compared to yesterday
Chu Se (Gia Lai)	VND/kg	152,500	– 4,500
­­ Dak Lak	VND/kg	155,000	– 4,500
Dak Nong	VND/kg	156,000	– 4,000
Binh Phuoc	VND/kg	152,000	– 4,000
Ba Ria - Vung Tau	VND/kg	153,500	– 4,500

In the world market, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 7,772 USD/ton; the price of Brazilian black pepper ASTA 570 at 7,500 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 7,500 USD/ton.

Muntok white pepper price is 9,691 USD/ton; Malaysian ASTA white pepper price is at 8,800 USD/ton.

Vietnam's black pepper price is trading at 6,500 USD/ton for 500 g/l; 550 g/l at 6,900 USD/ton; white pepper price at 9,700 USD/ton. IPC slightly reduced pepper prices in Indonesia and Brazil, sharply reducing Vietnam's pepper export price.

Pepper prices have been fluctuating within a narrow range in recent days as pepper growers are selling their products in small increments. The high pepper prices are good news for farmers but it is difficult for businesses that have signed contracts with fixed prices in advance, and now the prices are too high, they cannot buy the products and face high losses.

Recent market developments recall the sharp decline in mid-June when speculative activities pushed pepper prices to a shocking increase of over VND180,000/kg. The high prices caused some businesses to stop buying; meanwhile, some people and agents sold off their stocks from the previous crop to “take profits”. The strong increase in supply while the “withdrawal” of demand caused pepper prices to drop dramatically, losing more than VND20,000/kg in just one day.

Many industry experts believe that the sharp adjustment in pepper prices in mid-June was necessary when the market was "overheated" by speculation, and even agents trading other agricultural products temporarily switched to pepper trading, participating in "speculation" to make a profit from pepper. The adjustment helped the market become balanced, reflecting the supply-demand situation more closely.

Information for reference only. Prices may vary by location.

Source: https://congthuong.vn/du-bao-gia-tieu-ngay-2562024-gia-tieu-trong-nuoc-co-tiep-da-giam-manh-327906.html