Some domestic agricultural speculators and growers who still have stock still decided to wait a little longer, listen to the pepper market at the end of the year, and then sell.
After reaching the peak on September 21, the world pepper price turned to plunge according to the common commodity market. The decrease in pepper prices was also due to the loss of the Rupee exchange rate by 6.77% against the USD in the market for agricultural products.
Chinese traders resell previously collected goods to Vietnamese enterprises at great prices.
By the end of the week, world pepper prices had 3 consecutive declines, the October term fell a total of 765 Rupees to 36,220 Rupees/quintal, the November term decreased a total of Rs 720 to Rs 36,845/quintal. December term dropped a total of Rs 705 to Rs 37,325 per quintal.
Export pepper prices also fell in all markets, from 100-300 USD/ton depending on the European market, Arab bloc, and America respectively. Asian markets had the biggest drop.
Pepper prices have been too hot since the beginning of September due to the impact of real demand, not excluding the contribution of paper speculators in the world futures market to push up prices to earn short-term profits.
The current pepper importers are also hesitant with the high price, they only buy in moderation for their needs.
This afternoon, September 26, the price of black pepper in Ba Ria-Vung Tau also returned to 152,000 VND/kg, the market did not record any transactions. Some agricultural speculators and gardeners who still keep their goods revealed that they have not sold yet but will wait a little longer, listen to the pepper market at the end of the year, and then decide.
News from traders said that they have noticed an unprecedented phenomenon from the domestic market that Chinese traders who used to come to their home to collect pepper have rented a number of warehouses in the southern region. to store goods, not to export to the border. Now the opportunity for world pepper prices to increase, these traders launch their goods to sell to our country’s exporters at high prices. It is also not excluded that with strong financial potential and available resources, they have contributed greatly to causing the current pepper price fever.
The main pepper producing countries such as Malaysia, Indonesia, Brazil … this year the output decreased. Although the supply is mainly for domestic consumption, it also takes advantage of bringing the reserves to the market to take advantage of high prices to earn differential profits. Wait until India and Vietnam harvest the next crop, the price is low, they will collect goods for storage.
The world pepper price from now to the end of the year depends on the inventories of Vietnam and India.
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