According to agents and traders in the Southeast pepper growing regions, the slight increase in pepper prices is due to the demand for export goods, not because of tight supply.
Export pepper of Ea Ktur . Coffee One Member Co., Ltd
Yesterday, Thursday, October 18, the price of black pepper in the raw material areas continued to increase by 1,000 VND/kg. Specifically, the price of black pepper in a bucket in Ba Ria – Vung Tau market increased to 57,000 VND/kg, the remaining raw material areas in the Southeast and Central Highlands fluctuated between 54,000 and 55,000 VND/kg.
According to export traders, the amount of pepper exported to meet winter needs is not small. But in the past, European traders often gathered goods from Vietnam right after the harvest season, so the export volume at the end of the year tended to decrease. Combined with that, the negative interest rate of the Euro has encouraged European speculation the more pepper the better. Only when the price of pepper becomes expensive, the consumer markets have to consider their pockets and go to the source to buy directly, so the price of pepper usually goes up in the winter.
The domestic market of Vietnam has also recorded a sharp increase in the domestic price of black pepper in the bucket right after the Muslim fasting month of Ranadan, which is also the time when pepper speculators in Dubai gather.
However, the recent trend of higher supply than demand has led to a sharp drop in pepper prices in most markets, especially when Vietnam’s pepper output exceeds 200,000 tons/year. When pepper prices increase, not only Vietnam, but also farmers in many other countries around the world also expand their pepper growing area because they have more advantages in terms of land, production conditions, investment capital, etc. Brazil, which is said to be a new force in the pepper market, is likely to rise to be the world’s second largest pepper producer.
Another problem is that Brazilian traders often sell goods in an organized manner, unlike the Vietnamese market where they can buy and sell, and the amount of pepper in stock is not abundant. According to an export trader in Espírito Santos, the state that is developing a strong pepper growing area and is likely to rise to the top of Brazil, said that they often sign purchase contracts just before the new harvest so that farmers can buy goods. peace of mind to stabilize production, calculate investment costs for the whole upcoming crop. Besides, Brazilian pepper farmers often sell through their brokers. This merchant didn’t hesitate to reveal the normal asking price “soft” than Vietnam prices due to more favorable.
It is known that the traditional pepper-growing state of Paraná in southern Brazil is currently harvesting the new crop and is soon followed by the state of Espírito Santos, which has several regions at the same time as 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, the price of Vietnamese black pepper 500 and 550 Gr/l increased by 45-50 USD/ton and white pepper by 40 USD/ton, the price of Lampung Indonesia black pepper increased by 150 USD/ton, while the Indian Kochi pepper price decreased. 200 USD/ton, compared to the previous week.
According to agents and traders in the Southeast pepper growing regions, the slight increase in pepper prices is due to the demand for export goods, not because of tight supply.
Market observers said that the source of black pepper imported from Indonesia is currently not feasible, as the local price of black pepper has increased by 150 USD/ton. While black pepper imports from Brazil have slowed down because goods are being piled up at export seaports.
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