Domestic pepper prices: Continue to increase
As of 11am today (September 11), domestic pepper prices continued to increase sharply, an average increase of VND4,600/kg compared to the previous trading session. Currently, pepper purchasing prices range from 153,000 - 155,000 VND/kg. The average pepper purchase price nationwide is at 153,800 VND/kg.
Sharing at 153,000 VND/kg, the three provinces of Ba Ria - Vung Tau, Gia Lai and Binh Phuoc have increased by 4,000 VND/kg and 5,000 VND/kg respectively.
Notably, after a series of strong fluctuations, Dak Lak and Dak Nong provinces returned to the high price race when increasing by 5,000 VND/kg, to 155,000 VND/kg.
World pepper prices: Green appears
According to the International Pepper Community, on the trading floors, the price of black and white pepper in the Indonesian market reversed and increased. Black pepper prices increased by 0.97%, fluctuating around 7,147 USD/ton (equivalent to 185,608 VND/kg). At the same increase, the price of white pepper increased to 9,805 USD/ton (equivalent to 254,636 VND/kg).
For the Brazilian market, the price of ASTA 570 black pepper is anchored at 6,800 USD/ton.
Meanwhile, in the Malaysian market, ASTA black and white pepper prices are anchored at 9,850 USD/ton and 12,300 USD/ton, respectively.
Notably, Vietnam's export black pepper prices have stabilized after a day of unexpected price declines. The 500 g/l type is traded at 6,600 USD/ton (equivalent to 171,402 VND/kg); the 550 g/l type is currently at 6,800 USD/ton (equivalent to 176,596 VND/kg). Similarly, the price of white pepper for export fluctuates around 9,600 USD/ton (equivalent to 249,312 VND/kg).
In the Indian market, pepper prices continue to remain unchanged in most pepper cultivations. Garbled pepper costs 67,200 rupees/kg, (equivalent to 208,408 VND/kg), Ungarbled is listed at 65.200 rupees/kg, while gram/liter has the lowest price of 64,200 rupees/kg (exchanged at 199.14.4 VND/kg).
Assessment and forecast
In recent days, pepper prices have tended to stagnate and decrease slightly. However, according to experts, the impact of psychological factors from US countervailing taxes is not the main problem. Enterprises and many pepper growers believe that this tax rate does not greatly affect pepper products.
The US President's announcement of a longer 2020, 30-day countervailing tax has created a more positive impact for businesses' orders that may have been suspended due to concerns about previously high tariffs.
In the long term, pepper prices will continue to increase and may reach 200,000 VND/kg. Because pepper demand in the US is almost entirely dependent on imports. Along with that, global supply is increasingly limited due to declining output in some major producing countries such as Indonesia and India due to climate change, epidemics and increased input costs.
