Black Pepper price decreased in 3 weeks consecutively
Table of Contents
Black Pepper price
This is the third consecutive week of pepper prices in the country, with a reduction of 1,000 to 1,500 VND in the range of 57,000 to 59,000 VND / kg. As such, no province or city has recorded the price of pepper kept at 60,000 VND / kg.
The price of pepper decreased continuously due to supply-demand imbalance. The domestic market is currently under harvest, and at the same time, a significant amount of black pepper from the new Cambodian crop is being imported aggressively, causing a surge in supplies. At the same time, the demand of exporters and small speculators decreased sharply after the mixing of pepper into pepper for sale.
Review coffee prices last week
In the first days of the week, the coffee price tended to fall slightly, forming a new bottom for 2018. The deepest bottom was established on 16/5. However, the domestic coffee market quickly recovered immediately after the price of robusta coffee increased again. Last week, the price of coffee in the Central Highlands ranged from 35,500 to 36,400 VND / kg, up 300-500 compared with the beginning of the week.
The world coffee market entered a price adjustment after the robusta rises above $ 1,800 / tonne in the first week of May. However, as the rally was not supported by the strongest factors ( supply – demand) so prices fell sharply soon after.
Analyst Nguyen Quang Binh said that the sharp drop was due to financial investment funds on both bourses made a full-year repurchase agreement for the three weeks to the end of the 7 / 5. Accordingly, the sales position of arabica fell to 40,000 contracts and the robusta to more than 8,000 contracts per kg.
On the other hand, the Brazilian real devaluation against the US dollar also stimulated Brazilian sellers to the market, pushing up supplies. Moreover, if there is frost in Brazil, the situation is also difficult to change because the Brazilian coffee in the program of re-farming has been moved to lower and warmer areas, Binh said.
On the floor of robusta, prices fell steadily in the first week and recover slightly at the weekend. Investors in the coffee market are still focusing on Brazil’s coffee crop, with expectations of record production. This year’s coffee is likely to end later than any other year, said Ricardoo Santos, managing director at Riccoffee. According to him, it may be until October Brazil finished harvesting coffee because this is quite large.
On the arabica floor, prices hit a bottom after the US government announced the report showed that speculators have a large number of sales positions, higher than expected market. As a result, selling positions for arabica have been the lowest since early 2018, and speculators are likely to bet on arabica in the near future.
A trader speculates that speculative funds may re-establish a selling position on the arabica floor. Buying power will not be strong enough to keep the market stable. In addition, Arabica prices are also under pressure due to weakness of the Brazilian real.
Currently, investors are closely watching the weather in Brazil. It is forecast that the temperature in this country will gradually decrease. This is the time of the frosty phenomenon in Brazil.
