This Friday morning, June 15, the price of black pepper in raw material areas suddenly plummeted. In Ba Ria – Vung Tau, the most competitive locality has decreased by 2,000 VND / kg, down to 57,000 VND / kg. The remaining areas of raw materials also decreased, down to fluctuating between 54,000 and 56,000 VND / kg.
Read more: >> Domestic pepper prices continued to decline because of imported pepper
According to trading companies in the localities, the adjustment to reduce the price of raw material this time is due to the fact that the Export Traders have not placed an order for the demand of the August contract, while the raw materials are for processing. Exports on demand for July contract appear to have been sufficiently supplied.
Sources from market trade said that importers seemed to want to wait more and expect prices to improve somewhat when the two main producers, Indonesia and Malaysia, are members of the IPC (Pepper Community). The new crop has now begun to be harvested and is expected to launch in early August.
Meanwhile, the Central Bank’s decision to raise USD interest rates by 0.25% and the possibility of further increases also makes USD denominated goods expensive and purchasing power. in general temporarily leveled off.
However, the spice trade also expects the purchasing power of traditional consumer markets to rebound soon as demand from these markets is often quite stable, especially in Muslim countries as soon as possible. end of Lent of Ramadan this year.
According to the white pepper processing factories in Dong Nai and Ba Ria – Vung Tau, the demand for processing white pepper this year is not high. The Export Traders ordered the processing with relatively stable volume, while the demand for white pepper of the northern traders was almost negligible. It is known that white pepper prices of Southeast Asian countries decreased slightly by 30-50 USD / ton while Chinese 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 200 rupees to Rs 32,800 / quintal (equivalent to 4,846 USD / ton) for bucket pepper and at 34,000 rupees / quintal (equivalent to 5,023 USD). / ton) for preliminarily processed pepper, but the supply is also quite limited, while high quality pepper decreased by 500 rupees to Rs 37,500 a quintal (equivalent to 5,540 USD / ton).
Export price of Vietnamese pepper for export of grade 500 Gr / L – FAQ is at 2,700 USD / ton and for grade 550 Gr / l – FAQ is at 3,000 USD / ton, (FOB – HCM), the price is relatively stable.
The IPC’s trade report last week showed that the market was generally quite quiet. Pepper prices in most countries fell slightly, with India and Sri Lanka falling quite deeply as Malaysia, Sri Lanka were harvesting the new crop and Indonesia following.
* 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, down 14.0% in volume and 12.2% in price. value compared with the previous month, bringing the volume of exported 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 in the period reached 3,254 USD / ton, up 2.1% compared with the average export price of the previous month.
English
According to the Young intellectuals / CafeF
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