| Pepper price forecast June 22, 2024: Pepper price is bouncing back? Pepper price forecast June 23, 2024: Reversing to decrease but will it be difficult to fall below the low? |
Pepper price forecast on June 24, 2024 continues to decrease after fluctuating in different localities. El Nino weather factors causing drought reduce pepper output in exporting countries, especially the two countries that determine global supply, Brazil and Vietnam, and some other countries such as Indonesia, India, Malaysia, Sri Lanka.
In the long term, in the next 3-5 years, the amount of pepper produced cannot meet the world's consumption needs.
In the context of sea freight rates increasing by nearly 100%, the Vietnam Maritime Administration has proposed a series of solutions to reduce the burden on businesses and consumers. Proposed measures include: Closely monitoring service prices, encouraging businesses to sign long-term contracts with shipping lines, monitoring prices and surcharges outside of service prices, and reducing administrative procedures.
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| Pepper price forecast June 24, 2024: Will domestic pepper prices plummet? |
In the domestic market, pepper prices today, June 23, 2024, in the Southeast region, simultaneously stagnated in all localities, trading around 158,400 VND/kg, the highest purchase price in Dak Nong province was 161,000 VND/kg.
Accordingly, Dak Lak pepper price is purchased at 160,000 VND/kg. Chu Se pepper price (Gia Lai) is currently at 157,000 VND/kg. Dak Nong pepper price today is recorded at 161,000 VND/kg.
In the Southeast region, pepper prices remained stable today. Specifically, in Ba Ria – Vung Tau, it rose to 158,000 VND/kg; in Binh Phuoc, pepper prices reached 156,000 VND/kg.
Domestic pepper prices today remained stable at 157,600 VND/kg. Thus, domestic pepper prices today have all leveled off in some key localities compared to yesterday. In all localities, pepper prices are at 156,000 VND/kg or higher. The highest pepper price was recorded at 161,000 VND/kg.
Domestic pepper price on June 23 , 2024
Province, city | Unit | Trader purchase price | Increase/decrease compared to yesterday |
Chu Se (Gia Lai) | VND/kg | 157,000- | – |
Dak Lak | VND/kg | 160,000 | – |
Dak Nong | VND/kg | 161,000 | – |
Binh Phuoc | VND/kg | 156,000 | – |
Ba Ria - Vung Tau | VND/kg | 158,000 | – |
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 7,772 USD/ton, down 0.23%; the price of Brazilian black pepper ASTA 570 at 7,500 USD/ton, down 100 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 7,500 USD/ton.
Muntok white pepper price is 9,691 USD/ton, down 0.23%; 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, down 20%; 550 g/l is at 6,900 USD/ton, down 15.94%; white pepper price is at 9,700 USD/ton, down 23.71%. IPC slightly reduced pepper prices in Indonesia and Brazil, sharply reducing Vietnam's pepper export price.
In the first half of June, Vietnamese pepper prices increased dramatically, reaching a peak of VND180,000/kg on June 12. Immediately after that, selling pressure at the peak quickly pulled the market down.
Experts said the main reason for this price increase is a serious decrease in supply. Both domestic and global pepper production has decreased, while inventories from last year are at their lowest level in the past 5 years. Drought and adverse weather conditions in major producing countries such as India, Indonesia, and Brazil have also contributed to the decrease in output.
Ms. Hoang Thi Lien - President of VSPA assessed that domestic pepper prices are on an upward trend. The amount of pepper in the market is still there, but instead of selling it en masse, they choose to sell it in small quantities to wait and see how the price situation goes.
The increase in pepper prices has boosted exports thanks to demand from European and American markets. The US and China are said to be increasing their pepper purchases. In the first five months of the year, Vietnam exported a total of 114,424 tons of pepper. Of which, the US surpassed China to regain the leading position as Vietnam's largest pepper export market with a volume of 30,466 tons, accounting for 26.6% of the market share and up 44.4% over the same period.
Vietnamese pepper accounts for a large market share in the US thanks to its good price and increasingly high quality, making it popular in this market. In terms of consumption demand, the US is currently the world's largest pepper importer.
In May, Vietnam's pepper exports to China reached 3,137 tons, 4.8 times higher than the previous month and the highest level in the past 11 months.
Besides, the shipping freight crisis has pushed up prices of commodities, including pepper.
* Information for reference only. Prices may vary by location.
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