Pepper prices on 08/26/2024: highest at VND 145,000/kg

Pepper prices on August 26 globally

Globally, the pepper market continues to remain stable on August 26.

Specifically, the price of black pepper from Lampung, Indonesia, remains at $ 7,490/ton. The price of white pepper from Muntok, Indonesia, is steady at $ 8,818/ton.

The price of black pepper Kuching ASTA from Malaysia is $ 8,500/ton, while white pepper ASTA from Malaysia is priced at $ 10,400/ton.

In Brazil, black pepper ASTA 570 is still trading at $ 6,300/ton.

In Vietnam, the export price for black pepper 500 g/l is $ 5,800/ton, and for 550 g/l, it stands at $ 6,200/ton. The export price for white pepper is stable at $ 8,500/ton.

Global pepper prices today remain stable. Last week, the global pepper market experienced mixed trends, with only India and China recording decreases.

Thus, global pepper prices on 08/26/2024, show no new changes compared to yesterday.

Pepper prices on August 26 domestically

In the domestic market, pepper prices on August 26 remain stable compared to yesterday.

Specifically, Dak Lak continues to purchase pepper at VND 145,000/kg;

Pepper prices in Dak Nong are still at VND 145,000/kg;

Gia Lai is trading pepper at VND 144,000/kg;

Traders in Dong Nai are buying pepper at VND 144,000/kg;

Pepper prices in Ba Ria – Vung Tau are steady at VND 144,000/kg;

Meanwhile, Binh Phuoc is trading pepper at VND 144,000/kg.

Domestic pepper prices today remain unchanged, with the highest level reaching VND 145,000/kg. Last week, the domestic pepper market surged by VND 6,000.

Several companies believe that listing pepper on the exchange requires caution due to various risks, particularly speculation, which could negatively impact market stability.

In a discussion with us, Mr. Le Duc Huy, General Director of Dak Lak 2-9 Import-Export Company (Simexco Dak Lak), one of Vietnam’s leading pepper exporters, emphasized the need for caution when trading pepper on the exchange because the risk of speculation could increase significantly.

Mr. Huy cited the example of coffee—a commodity currently traded on global exchanges—which is heavily influenced by hedge funds and financial institutions, despite its large production volume. In contrast, pepper has a much smaller production volume, making it even more susceptible to manipulation. If large hedge funds intervene, prices could fluctuate wildly, disconnected from the actual supply-demand dynamics of the physical market.

Sharing this concern, Mr. Ho Tri Nhuan, Director of Gohan Company, noted that given the current pepper market situation, the absence of an exchange might be better than having one.

Without a commodity exchange, farmers, traders, and exporters can set their buying and selling prices independently. However, with an exchange, financial powers could push businesses into extremely difficult positions due to the significant speculative nature of the funds.

Thus, domestic pepper prices on 08/26/2024, are trading around VND 144,000 – 145,000/kg.

$ 1 = VND 24.700 – Source: Vietcombank.