The price of black pepper morning 3/9 has reached 140,000 VND / kg, a new record high. In addition to external factors, the price increase is due to competition between buyers and local people.
Domestic and world pepper prices increased continuously for over a month because of strong demand of importers.
The price of black pepper at Ba Ria-Vung Tau in the morning of September 3 went up to VND 140,000 / kg, a new record since 1996.
Many gardeners and traders confirmed that the recent pepper crop in Vietnam was not as expected, there were some key pepper growing areas which were lost due to pests and diseases.
On the world market, the price of MG1 Indian black pepper offered at 7,500 USD / ton for the EU market and 7,600 USD / ton for the US market (C&F). Indonesian black pepper grade BG1 offered at USD 7,600 / ton; Brazilian black pepper type Bra1 at USD 7,200 / ton; Vietnamese black pepper grade 550 Gr / l-FAQ offered price USD 7,200 / ton and grade 550 Gr / l-Asta offered price USD 7,700 / ton (FOB).
According to technical analysts on the exchange, the price of pepper on the NCDEX futures floor in India may increase by Rs 2,000-3,000 compared to the current price. Price increases due to strong demand in Europe and America. The price of Ramadan is weak every year due to the lack of purchasing power of importing companies but this year is completely different.
It is known that world pepper prices usually increase in a year on two cycles. The first cycle of increase is after Vietnam and India have finished their harvest in March to May, and the second cycle is in September or October after the Muslim fasting.
This year, the increase in pepper prices in the world is mainly due to the tight supply from the two main producing and exporting countries of Vietnam and India, when the export plan will decrease by more than 10% compared to the previous year. In addition, Brazil and Indonesia have experienced a decline in output, with very little inventory left over from the previous year.
The rapid volatility of the domestic market in the past August was recorded through the first phenomenon in Dong Nai and Ba Ria-Vung Tau where the competition for purchasing occurred not only among traders supplying goods to The company that both traders and some local farmers grow pepper.
Due to economic development, some farmers had their own to eat. They sold all pepper when the price was at 115,000 VND / kg. When the price reached 130,000 VND / kg and through listening to information and public opinion about the situation of supply and demand of the world pepper, they decided to buy, creating a new craze for the pepper market everywhere.
Therefore, outside the export price increases, inside traders and local people grow pepper, causing pepper prices to skyrocket, “racing with gold prices” as many articles have said.
As of today 3/9, the situation of buying pictures has eased somewhat. It seems that the inventory in the garden house has been exhausted, but according to them the price of pepper will increase. When asked why not continue to keep the goods when they believe that the price is still up, almost every pepper farmer appears to be satisfied, even for new buyers, waiting for the price of 140,000 VND / kg.
It is widely reported that Indonesian and Brazilian traders will return to the market after the holidays to sell in bulk. This will drive down the market. Meanwhile, some European customers want to make up for the shortage of sold goods. This is a key factor for some small domestic pepper speculators to expect to sell at VND 150,000 / kg.
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