Prices fell due to ample supplies when Malaysia, Indonesia and Brazil entered the harvest.
After surpassing the record price of Rs 30,000 of the session on June 22 and pulling domestic pepper prices back to the level of VND 110,000 / kg in the middle of last week, the price of pepper on the futures market turned down again.
In the next 4 sessions of June 23, 24, 25 and 27, pepper price of July term declined by Rs 3,236 total, from Rs 30,425 / quintal to Rs 27,189. Similarly, August pepper price declined by a total of Rs 2,979, from Rs 30,494 a quintal to Rs 27,515 a quintal.
Data analysis shows that the speed of decline has decreased gradually. If June 23 has dropped more than Rs 1,200 / quintal for both terms, then on June 27 it would only drop more than Rs 200 / quintal for both terms.
This also means that in the next session of June 28, the price of pepper in the futures market may decline slightly or will turn to open a new price increase.
If the price of pepper futures continues to decline due to supply supported by Malaysia, Indonesia and Brazil in the harvest, help ease the pressure on the world pepper market is still dominated by paper. while the real thing remains motionless.
Considering the correlation between supply and demand of pepper market in different countries and the development of the futures market, if the price of pepper increased, this period will boost the volume of real goods to participate more in the market. Speculation will increase buying volume.
Our pepper exporters will have a high price opportunity to boost export volumes to make up for the shortage of the plan.
According to official data of Customs, by the end of May, pepper export only reached 38.9% of the year plan; Accumulated from the beginning of the year until now, there is no month to catch up the export volume of the same period last year.
It is expected that in June our country will export 15,000 tons of pepper, increasing the export volume in the first 6 months to 70,000 tons, reaching a turnover of US $ 368 million.
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