Speculators are gathering pepper in Vietnam Black Pepper market
Today, Thursday 12th April, black pepper prices in Ba Ria – Vung Tau market remained stable at 58,000 VND / kg, other markets fluctuate in the range of 55,000 – 57,000 VND / kg.
When Brazil offered new pepper at a price below $ 2,500 a tonne and the volume of shipments surged more than 100% from the previous year, the International Pepper Community (ICC) has determined that Brazil will is the leading competitor of the pepper industry in Vietnam. Many countries that have traditionally imported pepper have turned to cheap sources of this “huge” agricultural country in South America. In particular, some pepper exporters of IPC have also imported pepper from Brazil to add value or give it to traditional customers because of high prices in India and even Vietnam.
According to a recent study, some Southern exporters (FDI) imported about 1,500 tonnes of pepper from Brazil when domestic pepper was “hard to buy” due to farmers’ resistance. Previous traders in Vietnam mainly imported pepper from Indonesia and especially since the current crop of pepper from Cambodia on more and more significant volume.
According to the International Pepper Community, the global pepper market is still in the low end of the year so the export volume in many traditional markets slows down, while the supply of Indonesia and Malaysia is also lower. Looking forward to new crop in July, August. Perhaps it is also a chance for Vietnam to accelerate and expand market share.
According to the preliminary report of the General Department of Vietnam Customs, exports in March 20118 reached 30,068 tons of pepper of all kinds, with a turnover of $ 106.18 million, up 132.5% in volume and up 124.3% in value over the previous month, bringing the volume of pepper exports in the first 3 months to 60,033 tons, up 17.5% in volume but down 31.4% in value over the same period last year. The average export price in the period reached $ 3,531 per ton, down 3.5% over the previous month’s average export price.
This is the monthly export volume of pepper to record the history of pepper exports of Vietnam. Vietnam’s largest pepper export markets in the first three months of 2018 were the United States, India, Pakistan and the United Arab Emirates, which continued to account for more than 43% of the market.
Today, Thursday 12th April, black pepper prices in Ba Ria – Vung Tau market remained stable at 58,000 VND / kg, other markets fluctuate in the range of 55,000 – 57,000 VND / kg. The price has remained stable over the last few days due to speculative buying in the domestic market as agricultural speculators proceeded to liquidate coffee and switch to pepper without waiting for further.
Harvesting pepper in the Central Highlands, the key production of pepper was in the final stages. In general, this season’s crop loss in old pepper growing areas is compensated by newly developed areas, so total output is still in the estimated 180,000 – 200,000 tons of pepper. Vietnam is still the largest producer and exporter of pepper in the world.
