Domestic pepper prices "plummet"?

Pepper prices are forecast to decrease across the board on June 19, 2024. According to Mr. Phan Minh Thong - Chairman of Phuc Sinh Group, when pepper prices reached a record high, speculators began to push up sales, causing this agricultural product to reverse its decline. However, Mr. Thong still believes that pepper prices are unlikely to decrease significantly due to the decrease in supply this year.

Pepper price forecast June 19, 2024: Domestic pepper prices suddenly plummet?

Mr. Le Viet Anh - General Secretary of VPSA assessed that it is very difficult to determine the exact cause of the fluctuation in pepper prices. However, he emphasized that the sharp increase and decrease in pepper prices can occur when a large number of investors buy for speculation.

" Farmers often hoard goods when prices increase, but businesses do not buy, leading to prices falling when they peak, " said Mr. Viet Anh.

It is forecasted that domestic pepper prices will hardly fall below 100,000 VND/kg, especially when the harvest season ended in April and the growing area is increasingly narrowed to make way for industrial zones. Mr. Viet Anh predicts that in the near future, domestic pepper prices will increase again not only in Vietnam but also around the world.

After reaching a record high of 180,000 VND/kg early last week, domestic pepper prices then fluctuated sharply with an increase and decrease range of 6,000 - 21,000 VND/kg, adjusting to around 161,000 VND/kg as of today.

Vietnam's domestic and international pepper prices have continued to increase since early May, due to low local inventories.

According to the International Pepper Community (IPC), the market last week showed a fairly positive response, with no producing country recording a decrease.

The average inventory in the hands of middlemen is very low, the lowest in recent years, due to the increasingly expensive capital cost of black pepper. Purchasing and storing inventory has become difficult and requires large capital, leading to low inventory.

Experts say the domestic market continues to adjust, depending heavily on speculation.

The Vietnam Pepper and Spices Association has also reported on the difficulties that pepper exporting enterprises are facing. The high pepper prices make it difficult for them to buy goods, and the high transportation costs add to the burden.

Countries such as Brazil and Indonesia are forecast to have poor crop yields, helping maintain Vietnam's pepper advantage in the international market.

Pepper price today, June 18, 2024, in the Central Highlands and Southeast regions decreased widely in some localities, trading around 159,200 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, down 10,000 VND/kg. Chu Se pepper price (Gia Lai) is currently at 158,000 VND/kg, down 10,000 VND/kg compared to yesterday. Dak Nong pepper price today is recorded at 161,000 VND/kg, down 9,000 VND/kg compared to yesterday.

In the Southeast region, pepper prices today decreased by 10,000 VND/kg. Specifically, in Ba Ria - Vung Tau, it decreased to 159,000 VND/kg, down 10,000 VND/kg; in Binh Phuoc, pepper prices reached 158,000 VND/kg, down 10,000 VND/kg.

Domestic pepper price on June 18 , 2024

Province, city	Unit	Trader purchase price	Increase/decrease compared to yesterday
Chu Se (Gia Lai)	VND/kg	158,000	-10,000
­­ Dak Lak	VND/kg	160,000	- 10,000
Dak Nong	VND/kg	161,000	- 9,000
Binh Phuoc	VND/kg	158,000	- 10,000
Ba Ria - Vung Tau	VND/kg	159,000	- 10,000

At the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 6,452 USD/ton; the price of Brazilian black pepper ASTA 570 at 8,200 USD/ton; the price of Kuching black pepper (Malaysia) ASTA remained at 4,900 USD/ton.

Muntok white pepper price is 8,422 USD/ton; Malaysian ASTA white pepper price remains at 7,300 USD/ton.

The price of Vietnamese black pepper increased sharply across the board, reaching 7,800 USD/ton (up 6.84%); 550 g/l at 8,000 USD/ton (up 2.56%); and white pepper at 11,300 USD/ton.

The International Pepper Community added that the market last week showed a fairly positive response, with no producing country recording a decrease.

Specifically, in South Asia, domestic and international pepper prices in India continued to increase since last month. Meanwhile, domestic pepper prices in Sri Lanka continued to increase over the past five weeks.

In Southeast Asia, domestic and export pepper prices from Indonesia recorded an increase since last week due to low inventory in the market.

Only domestic pepper prices in Malaysia recorded an increase this week. Meanwhile, the country's export pepper prices remained stable and unchanged.

Vietnam’s domestic and international pepper prices have continued to rise since early May. The increase is due to low local inventories as well as reduced harvest in Vietnam, according to Namagro.

Meanwhile, the prices of Brazilian black pepper and Chinese white pepper continued to increase since last week. The increase in pepper prices in Brazil is attributed to the poor crop in Espirito Santos, Brazil. Meanwhile, the price of Cambodian black pepper remained stable and unchanged.

Countries such as Brazil and Indonesia are forecast to have poor harvests, which will begin around August. This will help maintain Vietnam's advantage in the international market, as supply is dependent on domestic export companies.

* Information for reference only. Prices may vary by location.

Source: https://congthuong.vn/du-bao-gia-tieu-ngay-1962024-gia-tieu-trong-nuoc-tut-doc-326830.html