Just in the past week, the price of black pepper in the world market has increased by about 8-9%, while in the domestic market, the price of black pepper purchased in buckets has jumped to 101,000 VND/kg.
Adverse weather during the harvest season, the active purchase of Vietnamese pepper by Chinese customers and limited supply from Brazil, Indonesia and India are supporting pepper prices to continue their upward momentum. The global pepper market continues to be hot, with prices rising in most of the producing countries.
In just the past week, the price of black pepper in the world market has increased by about 8-9%. Unseasonal rains in India during October-December 2010 will certainly reduce production this year.
On the Indian domestic market, pepper prices are currently up to 3 USD/kg. The export price of pepper is up to $5,375/ton.
On the buyer side, many customers have the psychology of delaying buying. They expect prices to drop when Vietnam’s harvest is in full swing. However, the price of Vietnamese pepper has recently increased continuously.
Currently, pepper prices in Vietnam exceed 100,000 VND/kg. Export prices of black pepper increased by 10% to $4,550/ton (500g/l) and $4,950/ton (550g/l), (FOB).
In Brazil, the domestic price of black pepper was steady at 7.75 reais/kg. In dollar terms, prices increased by 1%, with ASTA grade increasing from $5,250/ton to $5,500/ton.
The world’s total pepper consumption last year was 320,000 tons, with an average annual increase in demand of 5%. Thus, the world’s total demand this year will be about 335,000 tons. But this year’s world pepper production is forecast to reach only 257,000 tons, down 33,700 tons compared to last year. The amount of the reserve is still 40,000 tons, bringing the total supply this year to 297,000 tons.
In general, the world is short of 38,000 tons. Supply and demand imbalance is the reason for the continuous growth of world pepper prices since the beginning of last year.
The International Pepper Organization (IPC) expects India’s output this year to be only 48,000 tons, down 2,000 tons compared to the previous crop. Production in Brazil and Indonesia also decreased slightly while China’s output this year remained unchanged. Meanwhile, pepper output of major producing countries, except for Vietnam, has decreased significantly.
According to the Vinanet
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