Domestic pepper prices: Green
As of 7:15 p.m. today (January 1), domestic pepper prices have increased simultaneously compared to the previous trading session, increasing by an average of 1,000 VND/kg. Currently, the purchase price ranges from 157,000 - 159,000 VND/kg. The average pepper purchase price nationwide increased to 158,000 VND/kg.
Ba Ria - Vung Tau and Gia Lai are the two provinces that are simultaneously anchored at 157,000 VND/kg, turning to increase back to 1,000 VND/kg.
Recorded the strongest increase was Binh Phuoc province, up to 2,000 VND/kg, bringing the price back to 158,000 VND/kg.
In the same direction, Dak Lak and Dak Nong provinces both recorded fluctuations when garden owners in this area sold to the market at 159,000 VND/kg, an increase of 1,000 VND/kg.
World pepper prices: Reversal developments
According to the International Pepper Community, on trading floors, black and white pepper prices on the Indonesian market both decreased, trading floors were red. Black pepper prices decreased by 0.87%, listed at 7,235 USD/ton (equivalent to 186,157 VND/kg). Similarly, white pepper prices continued to decline by 0.88%, currently listed at 9,959 USD/ton (equivalent to 256,246 VND/kg).
For the Brazilian market, the price of ASTA 570 black pepper was traded at 6,850 USD/ton, unchanged from yesterday's closing price (February 28).
In the Malaysian market, ASTA black and white pepper prices remained unchanged, anchored at 9,500 USD/ton and 12,000 USD/ton, respectively.
Notably, in Vietnam, black pepper prices for export remained unchanged after a period of mixed increases and decreases. The 500 g/l type is traded at 6,900 USD/ton (equivalent to 177,537 VND/kg); the 550 g/l type increased sharply by 6.34%, currently at 7,100 USD/ton (equivalent to 182,683 VND/kg). Similarly, the price of white pepper for export is at 9,900 USD/ton (equivalent to 254,727 VND/kg).
In the Indian market, pepper prices remained unchanged at the end of the week for most pepper cultivars. Garbled pepper costs 67,200 rupees/kg, (equivalent to 204,040 VND/kg), Ungarbled is listed at 65.200 rupees/kg, while gram/liter has the lowest price of 64,200 rupees/kg (exchanged at 194,931 VND/kg).
Assessment and forecast
Experts predict that in the second quarter of this year, China may increase purchases when Vietnam enters the main harvest season, helping domestic pepper prices recover. On the other hand, the US could adjust the import pace due to outstanding inventories from 2024.
Although the market is in an adjustment phase, export pepper prices tend to increase, bringing a positive signal to farmers. However, the stock stock strategy needs to be carefully calculated to limit the risks from global market fluctuations.
In fact, 2024 has seen US importers increase their stock purchases due to concerns about high prices, causing actual purchases to increase by 30 - 40%, although demand is forecast to increase by only 5%. This helps farmers and pepper reserves benefit from good selling prices right from the beginning of the crop.
However, many exporting enterprises have difficulty signing long-distance sales contracts with US customers, leading to losses when prices increase sharply at the time of delivery. This situation shows the importance of linking the supply chain and improving price forecasting capacity.
