Farmers only supply goods to the market on a drip basis when they need money to spend. Most are still holding the goods to wait for better prices because most believe that world prices are still high compared to domestic prices.
Pepper prices in the world futures market are still hot and are currently at Rs 29,203, Rs 29,624 and Rs 29,948 per quintal, equivalent to $6,497, $6,590 and $6,663 per tonne for August, September, and October terms.
This morning, August 3, the price of pepper in buckets in Ba Ria-Vung Tau stood at 113,000 VND/kg, in other places less than 2,000-3,000 VND/kg, remained stable throughout the week in a sign of increasing momentum.
The price of Vietnamese pepper has not decreased, showing that the supply is no longer abundant and that paper goods cannot overwhelm real goods when supply has not met demand.
The market is concerned because buyers are on summer vacation, so the number of spot transactions decreases. But export demand has kept prices high amid limited supply from major suppliers.
Vietnam’s pepper farmers only supply goods to the market on a drip basis when they need money to spend. Most still hold the goods to wait for a better price because most believe that the world price is still high compared to the domestic price.
Export price of pepper last week was almost unchanged. Black pepper grade 500 Gr/l-FAQ is priced at USD 5,600/ton and grade 550 Gr/l-FAQ is priced at USD 5,950/ton, while Asta pepper has a higher price of USD 300-350/ton (FOB).
Brazil-ASTA black pepper for export is offered at $6,400-6,450/ton while Bra2 is priced at $6,100/ton and Bra1 is $100/ton higher (FOB).
While India’s MG1 pepper remained steady at $6,700/ton (C&F).
According to a report of the Agriculture industry, the export price of pepper in the first 6 months of the year averaged 5,393 USD/ton, up 72.3% over the same period last year. Estimated exports in July will reach 15,000 tons of pepper of all kinds with an average of 6,000 USD/ton, a very high expected level.
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