The price of pepper last session ended with a strong increase due to the new short-buying power in the market. On the Indian Kochi pepper floor, the price was above 15000 rupees/quintal corresponding to the price of 48,000 VND/kg in the Vietnamese market, but in fact the pepper price in Vietnam is trading at 46,000 VND/kg. The price of pepper in Brazil with Asta is offered at 2,875usd/ton.
The Indian pepper market in recent times has been very quiet due to the Onam festival – this is one of the major festivals of this country.
In Brazil, the volume is only sold mainly in October and November, but not for further maturities, because they think that: pepper prices may increase by at least 12% by the end of the year. The reason is that the world economy is recovering and that can push up demand for pepper. According to some experienced brokers in the US pepper market, pepper prices are in a good range.
According to the Brazilian food association, Vietnam’s pepper output is not enough to meet demand because Vietnam has now exported about 94% of the total output of the last crop. Pepper is one of the commodities that if the world demand decreases, the consumption will also be weak and vice versa.
Vietnam’s new crop will start around February – March next year, so the new supply will not be available in time, the price of pepper in Daklak market is currently at 1.17usd/450gr. The price reached a peak of 48,000 VND/kg on August 19 and however compared to the previous year at 62,000 VND, the recent increase is not the peak.
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