This morning, April 16, the price of black pepper at Ba Ria-Vung Tau continued to drop to VND 110,000 / kg. Thus, just over 2 days the price of pepper dropped 12,000 VND / kg, meaning that the gardeners have lost 12 million VND / ton, a sharp reduction.
During the past 3 weeks, on the world pepper trading floor, Kochi-India, the price of pepper increased continuously. As of March 25, the price of pepper delivered in May was equivalent to US $ 5,338 / ton, until April 15, within the past 3 weeks, to US $ 5,990 / ton, an increase accounted for 12.2%.
May pepper prices in May were traded on Kochi-India.
Domestic prices of black pepper from the same time increased from VND 95,000 to VND 112,000 / kg, an increase of 17.9%. The increase in domestic pepper price was 5.7% higher than the world one in the same period, an unreasonable difference.
To explain this is not only the decrease in purchasing power of the domestic currency compared to other strong currencies and the rapid increase in domestic inflation has affected the overall commodity prices including agricultural commodities. . Besides, there is a push of the price of domestic speculators when there is information that the world supply of pepper this year is much lacking.
However, in recent days, the price of pepper on Kochi trading floor in India has leveled off and tends to decrease slightly, leading to a strong turning of domestic pepper prices.
According to analysts on the floor, there were a number of Vietnamese companies that were short selling because they thought that after March prices would fall and there would be no more buyers while the price of futures floor was too high compared to real products. and importers are speeding up purchases to shorten the gap between the two markets.
However, our country's exporters have seen that the price of pepper has increased steadily in the last 3 weeks, making it difficult for them to find goods compared to every year.
It is expected that this year the world will lack of pepper because the supply of capital is not enough demand, more major producing countries have lost the crop so nothing can compensate. Particularly in Vietnam this year, with the export plan of 125,000 tons, occupying the No. 1 position in pepper export, did not reduce supply worries.
A report by Vietnamese traders last week said that in the current high price situation, farmers of producing countries only need to sell 30-40% of their crop this year. costs and for return investment.
Farmers in Vietnam now know to wait for high prices, and they no longer have to worry massively selling like every year, because the rising price of agricultural products makes their lives more stable.
India, the country with competitive pepper prices in the world this year, also tightened the supply, although India annually imports about 10,000 tons to re-export.
Production this year is expected to decline in key countries, according to Reuters.
World Pepper Association (IPC) expected, this year's Indian output is only 48,000 tons, down 2,000 tons from the previous crop. Output of Brazil and Indonesia also decreased slightly and the output of China this year remained unchanged.
Meanwhile, Reuters forecast, this year the key producing countries, except Vietnam, all fell seriously. Therefore, the increase in consumption of major countries will put pressure on the already insufficient supply.
Currently, traders are paying attention to prices from Vietnam. Vietnamese exporters are pushing the price of 500 Gr / l grade pepper to US $ 5,900 / tonne (FOB), which is still cheaper than Indian pepper by US $ 150 – US $ 200 / ton.
Domestic speculators also said they were looking to buy Indian grade Asta.
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