This morning, Friday, June 15, the price of black pepper in raw material areas suddenly dropped sharply. In Ba Ria – Vung Tau, the most competitive price has been reduced by 2,000 VND/kg to 57,000 VND/kg. The remaining raw material areas also decreased, ranging from 54,000 to 56,000 VND/kg.
Read more: >> Domestic pepper prices continue to fall because of imported pepper
According to local trading companies, this adjustment in the price of raw materials is due to the fact that the export traders have not placed orders to supply the demand for the August contract, while the raw materials for processing export demand of the July contract seems to have been fully supplied.
The source from the market trade said that the importers seem to want to wait more and expect prices to improve somewhat when the two main producers Indonesia and Malaysia, members of the IPC (Pepper Community) International), offering new season pepper has now begun to be harvested and is expected to be available in early August.
Meanwhile, the decision to raise the USD interest rate by 0.25% by the US Central Bank (Fed) and the possibility of further increase also make the goods denominated in USD become expensive and purchasing power. in general temporarily stalled.
However, the spice trade also expects that the purchasing power of traditional consumer markets will soon increase again because the demand of these markets is usually quite stable, especially in Muslim countries as soon as the end of the holy month of Ramadan this year.
According to white pepper processing factories in Dong Nai and Ba Ria – Vung Tau, the demand for white pepper processing this year is not high. Export traders place orders for processing in relatively stable volumes, while northern traders’ demand for white pepper is almost negligible. It is known that white pepper prices of Southeast Asian countries decreased slightly by 30-50 USD/ton while China’s white pepper decreased by 250-270 USD/ton (FOB – Hainam) compared to the beginning of the month.
The price of Indian black pepper in the domestic market traded in the state of Kerala fell by Rs 200 per quintal at Rs 32,800 per quintal ($4,846 per metric ton) for bucket pepper and at Rs 34,000 per quintal ($5,023) /ton) for pre-processed pepper but the supply is also quite limited, while high quality pepper decreased by Rs 500 to Rs 37,500/quintal (equivalent to USD 5,540/ton).
Export price of Vietnamese pepper at 500 Gr/L – FAQ at USD 2,700/ton and 550 Gr/l grade – FAQ at USD 3,000/ton, (FOB – HCM), relatively stable price.
IPC’s trade report last week showed that the market in general was quite quiet. Pepper prices in most countries fell slightly, with India and Sri Lanka falling quite deeply as Malaysia and Sri Lanka were harvesting new crops and Indonesia followed suit.
* According to the report of the General Department of Vietnam Customs, exports in May 2018 reached 23,103 tons of pepper of all kinds, with a turnover of 75.17 million USD, down 14.0% in volume and 12.2% in price. value compared to the previous month, bringing the export volume of pepper in the first 5 months of the year to 109,907 tons, up 7.2% in volume but down 36.6% in value over the same period last year. The average export price of pepper in the period reached 3,254 USD/ton, up 2.1% compared to the average export price of the previous month.
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