Yesterday, on October 18, the price of black pepper at raw material areas continued to rise by VND 1,000 / kg. Specifically, the price of black pepper at Ba Ria – Vung Tau market increased to 57,000 VND / kg, the remaining material areas in the Southeast and the Central Highlands ranged from 54,000 to 55,000 VND / kg.
According to export traders, the amount of pepper exported to meet winter demand is not small. But before, European traders often gathered strong goods from Vietnam right after the harvest, so the export volume at the end of the year tended to decrease. Combined with the negative interest rate of the Euro has encouraged speculation in Europe to collect as much pepper as possible. Only when the price of pepper becomes expensive, the consumer market must consider the pocket money and look to the source to buy directly, so the price of pepper usually goes up to winter.
The domestic market of Vietnam has also recorded that the price of black pepper in the country has increased sharply after the Muslim fasting month of Ranadan, which is also the time when Dubai's pepper speculators gathered.
However, the tendency of supply to be greater than the recent demand has caused prices to plummet in most markets, especially when Vietnam's pepper output exceeds 200,000 tons / year. When pepper price increases, not only Vietnam but also many other countries in the world also expand the area of pepper cultivation because they have more advantages in land, production conditions, investment capital … Brazil, thought to be the new power in the pepper market, is likely to rise to be the second largest pepper producer in the world.
Another problem is that Brazilian traders often sell products in an organized manner, unlike where the Vietnamese market buys them and the quantity of pepper in inventory is not abundant. According to an export trader in Espírito Santos, the state is developing a large area of pepper and is likely to rise to the top of Brazil, saying that they usually sign a purchase contract just before the new harvest to farmers. peace of mind to stabilize production, calculate investment costs for the upcoming crop. Besides Brazilian pepper farmers often sell through their brokers. This trader did not hesitate to reveal that the asking price is usually “softer” than Vietnamese price due to the more favorable conditions.
It is known that the traditional pepper state of Paraná in southern Brazil is currently harvesting a new crop and shortly thereafter the state of Espírito Santos, which has several regions at the same time harvesting the crop of Vietnam and Cambodia.
According to world pepper market information, pepper prices last week increased in Vietnam, Indonesia and Sri Lanka but decreased in India, while other countries were relatively stable. Specifically, prices of Vietnamese black pepper grade 500 and 550 Gr / l increased by US $ 45 – 50 / ton and white pepper increased by US $ 40 / ton, Lampung Indonesia black price increased by US $ 150 / ton, while Indian Kochi price decreased. 200 USD / ton, compared to the previous week.
According to dealers and traders in the Southeast region of pepper growing areas, the slight increase in pepper prices was due to the need to supply exports but not to the tight supply problem.
Market observers said that black pepper imported from Indonesia is currently not feasible, as the price of black pepper on the spot has increased by 150 USD / ton. While the black pepper imported from Brazil has slowed down due to the congestion of goods in export ports.
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