The world pepper market is still hot due to supply

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In just the past week, the price of black pepper in the world market has increased by about 8-9%.

Adverse weather during the harvest season, the active purchase of Vietnamese pepper by Chinese customers and limited supply from Brazil, Indonesia and India are supporting pepper prices to continue their upward momentum.

The global pepper market continues to be hot, with prices rising in most of the producing countries.

In just the past week, the price of black pepper in the world market has increased by about 8-9%.

At this time in India, both pepper growers and local buyers keep their goods. Only a handful of people in Karnataka sold out. The asking price of pepper in India is around 233-235 Rupiah/kg.

Unseasonal rains in India during October-December 2010 will certainly reduce production this year. On the Indian domestic market, pepper prices are currently up to 3 USD/kg. The export price of pepper is up to 5,375 USD/ton.

On the buyer side, many customers have the psychology of delaying buying. They expect prices to drop when Vietnam’s harvest is in full swing. However, the price of Vietnamese pepper has recently increased continuously. Currently, pepper prices in Vietnam are approaching the mark of 100,000 VND/kg. Export prices in Ho Chi Minh City last week increased 2% to 90,500 VND/kg. Export prices of black pepper increased by 10% to $4,550/ton (500g/l) and $4,950/ton (550g/l), (FOB).

In Indonesia, wet weather in Lampung pushed prices up from 37,000 Rupiah to 38,500 Rupiah/kg. Prices in Sarawak also increased 1%.

In Brazil, the domestic black pepper price was stable at Real 7.75/kg. In USD terms, prices increased by 1%, with ASTA increasing from $5,250/ton to $5,500/ton.

White pepper prices in other markets also increased slightly. Prices in Banka increased 3% in the past week, while prices in Hainan increased 2%.

It is known that the total consumption of pepper in the world last year was 320,000 tons, the annual demand increased by 5% on average. Thus, the world’s total demand this year will be about 335,000 tons. But this year’s world pepper production is forecast to reach only 257,000 tons, down 33,700 tons compared to last year. The amount of the reserve is still 40,000 tons, bringing the total supply this year to 297,000 tons. In general, the world is short of 38,000 tons. Supply and demand imbalance is the reason for the continuous growth of world pepper prices since the beginning of last year.

The World Pepper Association (IPC) expects India’s output this year to be only 48,000 tons, down 2,000 tons from the previous crop. Production in Brazil and Indonesia also decreased slightly while China’s output this year remained unchanged. Meanwhile, pepper output of major producing countries, except for Vietnam, has decreased significantly.

According to the Vinanet


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