Pepper prices in the last session increased sharply due to the new purchasing power in the market. On Kochi Indian pepper market, the price was above 15000rupi / quintal, corresponding to the price of 48,000 VND / kg in Vietnam market but in fact the price of pepper in Vietnam was trading at 46,000 VND / kg. Prices of Asta brown pepper in Brazil were offered at US $ 2,875 / ton.
Indian pepper market has been very quiet in recent times due to the Onam household festival – this is one of the major festivals in this country.
In Brazil, the volume is mainly sold in October and November, but not for the longer term, because they think that pepper prices may increase by at least 12% by the end of the year. The reason the world economy is recovering and that may push up the demand for pepper. According to some experienced brokers in the US pepper market, pepper prices are in good amplitude.
According to the Brazilian Food Association, Vietnam's pepper output is not enough for demand because Vietnam has now exported about 94% of its total output of the last crop. Pepper is one of the commodities if world demand decreases, the consumption is also weak and vice versa.
The new crop in Vietnam will start around February – 3 years later so new supply will not be available, pepper prices in Daklak market is currently at 1.17usd / 450gr. The price reached the highest level of 48,000 VND / kg on August 19 and however, compared to the previous year, the price was 62,000 VND, the recent increase is not the peak.
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