Pepper market November 29, 2023: Slight increase in some key provinces

Pepper prices today (November 29) were adjusted to increase slightly in some localities.

Domestic pepper prices

According to the survey, pepper price In key provinces in the country, it is in the range of 69,500 – 73,500 VND/kg. Compared to yesterday, pepper prices increased slightly in the Southeast region and remained stable in the remaining provinces.

In particular, Dong Nai province has adjusted the price by 500 VND/kg, currently applying the same price as Gia Lai province of 69,500 VND/kg.

In Dak Lak and Dak Nong, the pepper purchasing price is still listed at the same level of 70,500 VND/kg.

That paralle, Pepper price today in Ba Ria – Vung Tau and Binh Phuoc both increased by 500 VND/kg, reaching 72,000 VND/kg and 72,500 VND/kg respectively.

World pepper prices

According to an update from the International Pepper Association (IPC) on November 28 (local time), the price of Lampung black pepper (Indonesia) increased by 0.5% compared to November 27.

At the same time, the price of Brazilian black pepper ASTA 570 and Kuching (Malaysia) ASTA black pepper remained stable.

At the same time of the survey, the price of Muntok white pepper increased by 0.5% compared to the previous session, while Malaysian ASTA white pepper prices had no new adjustments.

Vietnam Pepper and Spice Association (VPSA) estimates that global pepper output in the 2024 crop will decrease when output is forecast to decrease from producing countries. However, this decrease is still lower than the decrease in global consumption demand, so the price forecast is It will be difficult for pepper to increase continuously in the long term.

Except for China, it is forecast that the upcoming consumption demand of countries around the world may decline due to the impact of the economic crisis resulting from the conflict in Eastern – Europe.

At the same time, the impact of the war in Israel will also affect oil prices, which will further cause the world economic situation to fall into recession, with purchasing power likely to decrease in the near future.

World geopolitical context: economic recession, conflicts, wars between Russia – Ukraine, Israel – Palestine affect the global market, including oil prices and the world trade situation in general. Many countries are in a state of foreign currency scarcity.

Vietnam depends on the export market, so it has witnessed a decline in general industries, and the spice group is no exception.

In addition, macro management policies, purchasing power, and consumption power of major markets, including the US and EU, which are our key markets, will likely be difficult to recover in the short term.

Meanwhile, Mr. Le Duc Huy, General Director of Dak Lak 2-9 Import-Export Company Limited (Simexco) said that a price of 85,000 – 90,000 VND/kg in 2024 is feasible.

Mr. Huy explained that not only Vietnam but also the output of many pepper-growing countries such as India and Brazil are forecast to not be positive due to the impact of the bad weather El Nino.

Meanwhile, in the first quarter of 2024, purchases from Western countries may accumulate at the same time due to depleted inventories. This will help push domestic pepper prices back up.

“Normally, at the end of the third quarter, countries begin to increase imports to prepare for the beginning of 2024, but this year they do not seem confident about the general financial and economic situation, so purchases are quite cautious. . They haven’t bought yet because they’re afraid of burying their capital.

However, it is possible that by the first quarter of 2024, countries will have to buy goods for immediate delivery because by then, the inventory will be gone,” Mr. Huy said.

According to VietnamBiz.vn