Within the past 10 days, the price pepper on the NCDEX trading platform (Kochi-India) continuously grows at a high level. Merchants from big consuming countries like the US, China and Arab countries increased their purchasing power strongly. Domestic pepper prices also increased continuously.
Good prices for the season
However, at the end of the trading session at the end of the month, on March 31st, the world pepper market cooled down, the spot price of pepper decreased to Rs 23,000 for bucket and Rs 23,500 for MG1. May pepper price in May decreased by Rs 200 to Rs 24,990 and June period decreased by Rs 134 to Rs 25,231 (Rupee / 100kg), equivalent to USD 5,546 / ton and USD 5,599 /ton. Compared to 10 days ago, pepper price still increased an average of nearly 300 USD / ton for all kinds.
Pepper price traded in May term in NCDEX (Kochi-India).
On the afternoon of March 31, in Ba Ria – Vung Tau, white pepper cost VND 135,000-140,000 / kg, particularly high-quality white pepper, often called a garden specialty pepper, cost up to VND 160,000 / kg but the amount of goods There is also not much, while the price of black pepper has increased to reach 100,000 VND / kg and it is likely that the price will increase further because this region is at the end of the crop, the supply is starting to be scarce.
According to local agricultural purchasing agents, if the price of coffee usually only grows in the long term, the price of raw cashew nuts and pepper recently or fluctuated very quickly in the short term makes agents or traders Domestic agricultural speculation is also very unexpected.
A quick report from the US shows that the pepper market in many countries is also growing hot. In Vietnam, the pepper market has been gaining momentum continuously for days as Chinese traders are speeding up the purchase of massively black spot. In addition, in key pepper growing areas, there have been unusual irregular rains lasting for several days. This has slowed down the harvest and will delay the amount to market.
Currently, the provinces in the Central Highlands are waiting for favorable weather, when the unseasonal rains and cold winds come to an end, as gardeners step into full harvest. The survey showed that farmers knew how to regulate sales, avoiding massively “in the falling season” like every year.
According to the evaluation of the “farmer old tri”, this year's crop yield is likely to be higher than the previous year and the quality of pepper is also higher. It is expected that the country's output will reach 110,000 – 115,000 tons, compared with less than 110,000 tons of the previous crop
Forecast of world pepper production in 2011 (source: Reuters)
Supply is not enough demand
Reportedly, the world's total consumption of pepper last year was 320,000 tons, the average annual increase in demand of 5%. Thus the world's total demand this year will be about 335,000 tons. But world pepper output this year is forecast at 257,000 tons, down 33,700 tons from last year. The number of reserves is 40,000 tons, bringing the total supply this year to 297,000 tons. Generally, the world still lacks 38,000 tons. The imbalance between supply and demand is the reason why from the beginning of last crop until now, the price of world pepper has grown continuously.
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, according to Reuters, pepper production of major producing countries, except Vietnam, has been seriously reduced.
According to the General Statistics Office of Vietnam, in March, the country exported 15,000 tons of pepper of all kinds, the value of turnover reached US $ 73 million, increasing the export volume of the first quarter of 2011 to 25,000 tons of pepper of all kinds, total turnover reached 121 million USD. Compared to the same period last year, it decreased by 11.7% in volume but increased by 41.1% in price.
The Vietnam Pepper Association (VPA) also said that in the first half of March, Vietnamese enterprises exported 6,796 tons of all kinds of pepper, including 5,548 tons of black pepper and 1,248 tons of white pepper. The average export price of black pepper reached 4,403 USD / ton and white pepper reached 6,972 USD / ton.
Recently, businesses are increasing sales of black pepper grade 500gr / l at 4,950-5,000 USD / tonne (FOB), while 550gr / l grade did not see transactions.
Vietnam is a country that produces more than 30% of pepper production and has been the world's No. 1 exporter of spices for many years.
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