Turning down, the market is in a saturated phase, trading is gloomy

Pepper prices today, August 3, 2024, in the domestic market turned to decrease slightly in key localities, trading from 147,000 - 148,500 VND/kg.

Pepper price today August 3, 2024: Reversing to decrease, the market is in a saturated phase, trading is gloomy. (Source: Shutterstock)

Pepper price today, August 3, 2024, in the domestic market slightly decreased in key localities, trading from 147,000 - 148,500 VND/kg.

Specifically, pepper price today in Gia Lai is at 147,000 VND/kg.

Pepper prices today in the provinces of Dong Nai (148,000 VND/kg); Dak Lak (148,500 VND/kg); Dak Nong (148,000 VND/kg); Ba Ria - Vung Tau (148,000 VND/kg) and Binh Phuoc (148,000 VND/kg).

Thus, after a sideways session, domestic pepper prices today turned to decrease slightly in key localities, with a decrease of 500 - 1,000 VND/kg. The highest pepper price was at 148,500 VND/kg.

In the second quarter of 2024, domestic pepper prices witnessed a record increase from VND92,000 - 94,000/kg in early April to VND180,000/kg on June 11, an increase of 90% in just over two months and the highest level in the past 8 years. Pepper prices then adjusted down to VND153,000 - 157,000/kg at the end of June.

Thus, by the end of the second quarter, domestic pepper prices had increased by about 93% compared to the beginning of the year and 2.3 times higher than the same period last year.

Pepper prices have skyrocketed in recent times mainly due to concerns about global supply shortages, especially in two countries that determine the world's supply, Brazil and Vietnam, both of which have seen reduced production due to drought caused by El Nino weather factors. Meanwhile, demand has increased in some major consumer markets such as the US and the European Union (EU).

Experts say that the market is in a saturated phase, and there are not many real transactions left. One of the expected boosts is the sudden increase in purchasing power from the Chinese market that has not yet arrived. In the first half of 2024, the amount of pepper imported from Vietnam to this market decreased sharply, reaching only 7,453 tons, down 85.2%.

This year, in China's main pepper producing region, crop failure is also worrying, with speculators hoarding goods. According to experts, it is likely that China and European traders are waiting for information and new shipments from the Indonesian harvest.

Commenting on the market in August 2024, experts predict that it will be more positive. The downward trend will end. Low supply in harvesting countries continues to be the driving force for the market to go up.

In the world market, at the end of the most recent trading session, the International Pepper Community (IPC) listed the price of Lampung black pepper (Indonesia) at 7,172 USD/ton, up 0.31%; the price of Brazilian black pepper ASTA 570 at 6,850 USD/ton; the price of Kuching black pepper (Malaysia) ASTA at 7,500 USD/ton.

Muntok white pepper price is 8,788 USD/ton, up 0.31%; Malaysian ASTA white pepper price is at 8,800 USD/ton.

Vietnam black pepper price is traded at 6,000 USD/ton for 500 g/l; 550 g/l at 6,600 USD/ton; white pepper price at 8,800 USD/ton.

Source: https://baoquocte.vn/gia-tieu-hom-nay-382024-quay-dau-giam-thi-truong-trong-giai-doan-bao-hoa-giao-dich-am-dam-281146.html