The price of black pepper in the morning of September 3 increased to 140,000 VND/kg, a new record high. In addition to external factors, the price increase is also due to the situation of buying competition between traders and local people.
Pepper prices in the country and the world have increased continuously for more than a month because of strong demand from importers.
The price of black pepper in a bucket in Ba Ria-Vung Tau on the morning of September 3 has risen to 140,000 VND/kg, a new record since 1996.
Many gardeners and traders confirmed that Vietnam’s last pepper crop was not as expected, there were some key pepper growing areas that lost revenue because of pests and diseases.
On the world market, the price of Indian black pepper MG1 grade has been offered for sale at $7,500/ton for the EU market and $7,600/ton for the US market (C&F). Indonesian black pepper grade BG1 offered at $7,600/ton; Bra1 black pepper at USD 7,200/ton; Vietnamese black pepper grade 550 Gr/l-FAQ is offered at $7,200/ton and grade 550 Gr/l-Asta is offered at $7,700/ton (FOB).
Technical analysts on the exchange said that the price of pepper on the NCDEX futures floor in India could increase by Rs 2,000-3,000 compared to the current price. Prices increased due to strong consumer demand in European and American countries. Every year on Ramadan the price is usually weak because of the lack of purchasing power of the importing companies, but this year is completely different.
It is known that world pepper prices usually increase in a year in two cycles. The first increase cycle is after Vietnam and India complete the harvest in March to May, and the second cycle is in September or October after the Muslim fasting holiday.
This year, the increase in pepper prices in the world is mainly due to tight supply from the two main producing and exporting countries Vietnam and India, when the export plan will decrease by more than 10% compared to the previous year. In addition, Brazil and Indonesia’s output both decreased, the amount of inventory that was left in the previous year’s pillow was very little.
The rapid increase in the volatility of the domestic market in August was recorded through the phenomenon that for the first time in Dong Nai and Ba Ria-Vung Tau, there was a competition to buy not only between traders supplying goods to customers. The company belongs to both traders and some local farmers growing pepper.
Due to economic development, some farmers had enough to eat. They have sold out of pepper since the price is at 115,000 VND/kg. When the price rose to 130,000 VND/kg and after listening to information and public opinion about the world pepper supply and demand situation, they decided to buy it, creating a new fever for the pepper market everywhere.
Therefore, outside the export price increase, inside the pepper traders and local people push the price, causing the pepper price to skyrocket, “race with the gold price” as many articles have said.
As of today, September 3, the situation of buying and selling has somewhat calmed down. It seems that the inventory in the garden has been exhausted, although they say the price of pepper will go up. When asked why they don’t keep holding when they believe that the price is still going up, almost all pepper growers are satisfied, even for new buyers, when they wait for the price of 140,000 VND/kg.
There is a lot of information that traders from Indonesia and Brazil will return to the market after the holiday to sell out in large quantities. This will push the market price down. Meanwhile, some European customers want to make up for the lack of sold goods. This is a key factor for some small domestic pepper speculators to expect at a price of 150,000 VND/kg to let go.
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