World pepper prices dropped sharply

World pepper prices dropped sharply
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Prices fell due to abundant supply when Malaysia, Indonesia and Brazil entered the harvest season.

After surpassing the record mark of Rs 30,000 in the session on June 22 and pulling the domestic pepper price back up to the mark of VND 110,000/kg in the middle of last week, pepper prices in the futures market fell again.

In the next 4 sessions of June 23, 24, 25 and 27, the price of pepper for July futures dropped by a total of Rs 3,236, from Rs 30,425 per quintal to Rs 27,189 per quintal. Similarly, the August pepper futures price dropped a total of Rs 2,979, from Rs 30,494 per quintal to Rs 27,515 per quintal.

Analysis of the data shows that the rate of decline has slowed down later on. If on June 23, there is a sharp decrease of more than Rs 1,200/quintal for both terms, then on June 27, it will only reduce more than Rs 200/quintal for both terms.

This also means that in the next trading session of June 28, pepper price in the futures market may only decrease slightly or will turn to open a new price increase.

If the price of pepper futures continues to decline, it is due to the supply supported by Malaysia, Indonesia and Brazil in the harvest season, helping to reduce pressure on the world pepper market which is still dominated by paper goods. while the real thing remains motionless.

Considering the supply-demand relationship of the pepper market of other countries and the development of the pepper futures market, if the price of pepper futures increases in this period, it will promote the volume of real goods to participate in the market more and investors Speculation will increase buying volume.

Our country’s pepper exporters will have the opportunity to have high prices to boost export volume to make up for the shortfall of the plan.

According to the official data of the Customs sector, by the end of May, pepper exports only reached 38.9% of the year plan; accumulated from the beginning of the year until now, there has been no month that can catch up with the export volume of the same period of last year.

It is expected that in June our country will export 15,000 tons of pepper, increasing the export volume in the first 6 months to 70,000 tons, reaching a turnover of 368 million USD.

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