Pepper prices on 08/09/2024: Mixed movements

Pepper prices on August 9 globally

On the global market, pepper prices on August 9 showed mixed movements.

Accordingly, the price of black pepper in Lampung, Indonesia, increased by 0.92%, reaching $ 7,303/ton. Meanwhile, the price of white pepper from Muntok, Indonesia, also rose by 0.92%, standing at $ 8,948/ton.

The price of Kuching ASTA black pepper from Malaysia remained stable at $ 8,500/ton, while the price of white ASTA pepper from the same country held at $ 10,400/ton.

In Brazil, the price of ASTA 570 black pepper traded at $ 6,400/ton.

In Vietnam, the export price of black pepper, grade 500 g/l, decreased to $5,800/ton (down $ 200), while the grade 550 g/l was priced at $ 6,200/ton (down $ 400). The export price of white pepper also dropped, now standing at $ 8,500/ton (down $ 300).

Global pepper prices increased sharply in Indonesia but dropped by $ 200 – $ 400/ton for Vietnam’s export pepper. Prices in other countries remained unchanged.

According to the Agency of Foreign Trade (Ministry of Industry and Trade), the global pepper supply has been replenished as Indonesia began its harvest season in July. However, Brazil is facing continuous crop failures due to drought.

Reports from some farmers in the Espirito Santos region of Brazil indicate that the pepper harvest in 2024 might be 25-30% lower due to heat causing nearly all first-batch blossoms to drop, and the fruit set rate for the second and third batches is quite low. As a result, the pepper yield is expected to reach only about 70% of last year’s level. Overall, the country’s 2024 production could decrease by 20-25% compared to 2023.

Experts predict that signs of supply shortages compared to demand will continue to be seen in the market in the coming time. Additionally, rising transportation costs and port congestion in Asia are also affecting prices in import markets and could cause shipping delays, leading to price increases in the medium and long term.

Thus, global pepper prices on 08/09/2024 showed mixed changes compared to the previous day.

Pepper prices on August 9 domestically

In the domestic market, pepper prices on August 9 experienced mixed movements compared to the previous day.

Specifically, Dak Lak purchased pepper at VND 138,000/kg, an increase of VND 1,000;

Dak Nong saw prices continue to decrease by VND 1,000, dropping to VND 136,000/kg;

Gia Lai’s pepper prices rose by VND 1,000, reaching VND 138,000/kg;

Traders in Dong Nai purchased pepper at VND 138,000/kg, an increase of VND 2,000;

Ba Ria – Vung Tau’s prices slightly increased to VND 137,000/kg;

And Binh Phuoc’s pepper prices increased by VND 2,000, reaching VND 137,000/kg.

Domestic pepper prices today slightly decreased in Dak Nong but increased by VND 1,000 to VND 2,000 in other key regions, bringing the commodity back to the VND 138,000/kg level.

The Agency of Foreign Trade believes that Vietnam’s pepper industry will benefit from higher prices in the near future due to limited supply. This could also create opportunities for Vietnam to increase its market share and further strengthen its position in key markets like the US, China, and Europe.

According to VPS), the supply shortage will likely cause pepper prices to experience further unusual fluctuations, similar to what happened on June 11, when prices surged by VND 20,000/kg in the morning but sharply declined by the afternoon.

Thus, domestic pepper prices on 08/09/2024, are trading around 136,000 – 138,000 VND/kg.

$ 1 = VND 24.910 – Source: Vietcombank.