Today June 1, the price of black pepper in Ba Ria – Vung Tau decreased to 58,000 VND / kg, other markets in the country also decreased, fluctuating in the 56,000 – 58,000 VND / kg.
Read more: >> Imported goods “have” prices for domestic pepper
Farmers dry pepper in the harvest season
However, according to traders in Chau Duc district, Xuyen Moc, this price is only purchased by companies supplying pepper for “Termites” with reason “No need yet”. It is known that pepper exporting companies in the south are looking to supply new crops from Indonesia and Malaysia which will be harvested in July and August, which are said to have the most competitive prices today.
In the April 19 news (Please read the newsletter again: Pepper prices continue to rise) has mentioned “Bomb slowly explodes” from Indonesia.
It is known that some pepper growing areas in the Lampung region of Van Dao Country started to harvest early, so the asking price for black pepper fell below 3,000 USD / ton, down 4% from the previous week. Hence does not rule out the speculative discharge the previous season has already been in progress, according to market sources.
In contrast, contracts to supply white pepper to Chinese traders at this time were rejected from buyers, according to producers who process white pepper in Xuan Loc – Dong Nai. Customers switched to other sources with more competitive prices, such as Indonesia offering white pepper at $ 4,120 / ton (FOB – Pkl Pinang) and Malaysia’s offering at $ 4,055 / ton (FOB – Kuching), while the asking price of white pepper of Vietnam approximately 4,280 USD / ton (FOB – HCM) and China 6,000 USD / ton (FOB – Hainam).
Obviously, the pressure of the new pepper crop in Indonesia and Malaysia, the two producers who are also members of the International Pepper Association (IPC) at this time, is not small.
According to the IPC trade report, in 2017, Indonesia exported 42,700 tons of pepper of all kinds with a total turnover of US $ 236 million, down 20% in volume and 45% in value compared to 2016’s exports. In which, Vietnam alone imported 16,500 tons, accounting for nearly 40% of the country’s pepper export volume. While the US, an important consumer market, imported only 7,200 tons, accounting for 17% and India also imported with a significant number of about 4,600 tons, accounting for 11% of Indonesian exports.
According to a report by the Vietnam Agriculture and Rural Development Industry, the volume of pepper exported in May 2018 is estimated at 22 thousand tons, with a value of $ 70 million, bringing the volume of pepper exports in the first 5 months of 2018 is estimated at 108 thousand. tons and 377 million USD, up 5.4% in volume but down 37.6% in value over the same period in 2017. Average export price in the first 4 months of 2018 reached 3,537 USD / ton, down 42% compared to the same period in 2017.
English
According to the Young intellectuals / CafeF
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