Pepper Market November 25, 2024: Prices increased slightly at the beginning of the week
Update pepper information
In a recent report, Ptexim said demand remained weak in major markets such as the US, EU, Middle East and China.
The ongoing coffee harvest season attracts investors’ attention and capital, which could cause cash flow to shift away from pepper. This competition for investment could lead to a reduction in focus on pepper production and trading, contributing to the already recorded price decline.
In 2024, Vietnamese coffee prices are also at a good level and this is Vietnam's main harvest season. At the same time, this is also the time when countries around the world focus on buying coffee from Vietnam.
However, pepper inventories have been sharply reduced, with current stocks being held mainly by a small number of dealers and import-export companies . Therefore, Ptexim predicts that the upcoming market trend could witness significant volatility, especially as inventories are low and there are signs that the upcoming crop will be reduced.
According to recent surveys, Ba Ria – Vung Tau, one of the main pepper growing areas in Vietnam, has recorded a sharp decline in pepper production of about 50%. This severe decline is attributed to many factors, of which climate change is the most important cause. Unpredictable weather patterns, including irregular rainfall and extreme temperatures, have negatively affected the growth and productivity of pepper plants.
Tariffs proposed by US President-elect Donald Trump could encourage US importers to boost purchases before the tariffs are imposed, which could lead to a sharp increase in container shipping rates.
The urgent and increased demand for imports is likely to cause a sharp increase in ocean freight costs in 2025. However, by 2026, we could see a significant decline in these costs as the US works to reduce its inventories.
According to VietnamBiz.vn
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