On Friday 06/04, the price of pepper in Ba Ria – Vung Tau market was stable at 57,000 VND / kg, while in other domestic markets, the price of pepper increased simultaneously by 1,000 VND to fluctuate in about 54,000 – 56,000 VND / kg black pepper.
Read more: >> Pepper prices rebounded but still faced many difficulties
>> World pepper prices were stable, domestic pepper prices hit a record low
Pepper prices at domestic markets were on 6 April 2018
Information at the 45th Annual Meeting of the International Pepper Organization (IPC) in Sri Lanka said that the pepper harvest in 2018 is about 570,000 tons, the inventory brings about 100,000 tons more. In particular, many countries that are not members of IPC, such as China, Cambodia, and Thailand, have their output increased very quickly, soon becoming a rival of their neighboring countries. However, most significantly, Brazil's exports in 2017 will double compared to 2016 and even more strongly in 2018, will be a potential competitor of Vietnam's pepper industry.
Meanwhile, the Food and Agriculture Organization of the United Nations (FAO) is still optimistic that the long-term pepper production of the world needs to increase to meet demand.
On Thursday, April 5, Indian pepper on NCDEX – Kochi, after rising Rs 320 in the previous session, corrected slightly. April contract delivery fell 85 lakhs to Rs 40,620 / quintal (equivalent to 6,245 USD / ton), while May delivery contract fell 90 lakhs to Rs 40,820 / quintal (equivalent to 6,276 USD / ton), Prices remained stable compared to a week earlier.
Spot prices of pepper were also stable at Rs 38,600 a quintal (US $ 5,935 per tonne) for pail and Rs 40,600 a quintal (US $ 6,242 per tonne) for the selected type of pepper. However, the price decreased by approximately 10 USD / ton compared to a week earlier due to the stronger exchange rate of the Rupee against the USD.
In the international market, Brazilian pepper price is a direct competitor to Vietnam's current pepper price reported unchanged because Brazil is also out of stock. It is worth noting that the Brazilian people do not intend to store pepper after the harvest because the output of each farmer is not much. Pepper prices of Indonesia and Malaysia were also stable. In contrast, the price of Vietnamese black pepper offered for sale decreased an average of US $ 200 / ton compared to the previous week.
While the price of black pepper in the domestic market of Vietnam has increased by an average of 2,000 VND / kg compared to the previous week. But still down 15,000 VND / kg compared with the price of the first day of entering 2018.
Indian pepper production this year declined not as originally estimated …
According to pepper exporters located in the South, world pepper prices have some prosperity in the short term due to the dried Brazilian supply when the harvest is completed. The harvest of India will not reach as expected because the weather in the two major pepper growing states, Karnakata and Kerala, is unfavorable. Expected production of all India crop this year decreased by 10,000-15,000 tons to only 60,000 tons compared to the initial estimate. Although Vietnam's crop production currently dominates the world supply of pepper, the export volume of pepper is quite plentiful enough for short-term contracts.
Share with agents, domestic companies supplying goods, pepper exporters said they really want better prices. Because they have to meet the stable needs of customers, they often store a certain amount of goods and therefore, do not exclude them to buy early at the beginning of the season to deliver low prices in the middle of the season. It is clear that no exporters want the market to fluctuate as recently.
Exporters expect Brazil to harvest new crops this year in September, October, and November, certainly the pressure on prices will increase again and will probably be worse than this year. Meanwhile, the increasing output of Cambodia and Indonesia has also contributed to increasing the pressure on prices, not knowing the future of this fourth cycle of pepper prices will end.
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Source Young intellectuals / CafeF
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