The world pepper market from the beginning of this month has continued a strong downward trend due to the influence of the Vietnamese market. Domestic pepper price dropped sharply from the peak of 150,000 – 160,000 VND/kg to 136,000 – 140,000 VND/kg.
Peppertrade sources quoted international experts as saying that Vietnam’s pepper exports in the first 10 months of this year reached a record of 120,000 tons, causing the world pepper market to reverse sharply.
Vietnam’s export 500 Gr/l-FAQ pepper is priced at $6,900 – $7,300/ton, 550 Gr/l-FAQ is priced at $7,600/ton, down $600-700 compared to the peak some time ago. 1 month.
Black pepper buckets in Ba Ria – Vung Tau are currently about 20,000-30,000 VND/kg lower than the peak, about 136,000-140,000 VND/kg. Many hoarders are starting to dump out of fear that prices could fall further.
The price drop of Vietnam’s FAQ 500 GL and 550 GL pepper has impacted the global market. In the Indian market, the price difference between the November and December forward contracts created a sell-off phenomenon. term conversion, plus pressure from the Vietnamese market, led to a sharp drop in Indian pepper prices.
The rainy season has begun in the northeastern region of India, where there are extensive pepper farms, and harvests there will inevitably be slowed, possibly stopping the price trend down. Indian pepper growers have begun to show disappointment in seeing prices fall for a long time, although demand in overseas markets remains relatively strong.
Since the European markets have had some problems arising from the debt crisis, many importers prefer to look for cheap Vietnamese pepper rather than higher priced Indian pepper. However, some customers still prefer Indian pepper.
It is forecasted that the world pepper market will continue to be in a tug-of-war trend, due to the sale of reserves from Vietnam and the euro area public debt crisis.
In addition, Vietnam’s policy of cutting interest rates also has a significant impact on recent and upcoming price trends.
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