Pepper market February 24, 2024: Domestic pepper prices turned around after 4 days of strong increase

 

Pepper price today February 24 is in the range of 92,500 - 95,500 VND/kg. After 4 days of strong increases, the market corrected slightly. This week, pepper prices decreased in India and remained stable in Indonesia while the domestic market in Vietnam increased sharply.

In Dak Lak and Dak Nong provinces,  today's pepper price is purchased at 92,000 VND/kg.

In Gia Lai province, today's pepper price is 91,000 VND/kg.

Meanwhile in Dong Nai, today's pepper price is at 91,500 VND/kg, down 3,500 VND/kg.

In Ba Ria - Vung Tau province, pepper price today is at 91,000 VND/kg, down 3,000 VND/kg.

In Binh Phuoc province, today's pepper price was purchased at 91,500 VND/kg, down 3,500 VND/kg.

Pepper prices today decreased by 2,500 - 3,500 VND/kg in localities in the Southeast region, remaining unchanged in the remaining provinces compared to the same time yesterday. After 4 days of strong increases, the market corrected slightly.

This week, many local press agencies have begun to report on the new pepper crop. Most of them show the excitement of farmers when pepper prices increase, but they also show a decline in output, favorable harvesting staff, and more speculative psychology than last year.

Pepper prices in the domestic market increased due to limited supply, while businesses still had a need to buy to ensure export progress.

According to statistics from the Department of Crop Production and Plant Protection of Ba Ria-Vung Tau province, up to now, Ba Ria-Vung Tau province is cultivating more than 10,400 hectares of pepper, down more than 280 hectares compared to the beginning of 2023.

According to the Department of Agriculture and Rural Development of Gia Lai province, by the end of 2023, the whole province will have 8,798 hectares of pepper, with an output of about 28,580 tons. Data from the Ministry of Agriculture and Rural Development shows that the pepper growing area in Vietnam in 2023 will reach 115 thousand hectares, down 5,000 hectares compared to 2022. Output in 2023 will reach 190 thousand tons, an increase of 3.8% compared to 2022.

At the end of the most recent trading session, the International Pepper Community (IPC) listed Lampung (Indonesia) black pepper price at 3,922 USD/ton, an increase of 0.25%; Brazilian black pepper price ASTA 570 is at 4,350 USD/ton; Kuching (Malaysia) ASTA black pepper price remained at 4,900 USD/ton.

Muntok white pepper price was 6,184 USD/ton, up 0.26%; Malaysian ASTA white pepper price is still at 7,300 USD/ton.

Vietnam black pepper price is trading at 3,900 USD/ton with 500 g/l type, 550 g/l type at 4,000 USD/ton; White pepper price is at 5,700 USD/ton.

IPC assesses that this week's pepper market continues to have mixed reactions. Domestic and international Indian pepper prices continue to be reported with a downward trend since last week. Both domestic and international Indonesian pepper prices were stable this week due to few transactions in the market. Meanwhile, Vietnam's domestic pepper prices increased well.

According to KTĐT.vn

Pepper market on February 16, 2024: Continues to increase in some key provinces

Domestic pepper prices

According to the survey,  pepper prices  in the domestic market fluctuated between 81,500 - 85,000 VND/kg after being adjusted to increase in some localities.

Records show that Dong Nai province has the lowest price of 81,500 VND/kg and Gia Lai province has a slightly higher price of 82,000 VND/kg.

Next is Ba Ria - Vung Tau province with a price of 84,000 VND/kg.

In Dak Lak and Dak Nong provinces, pepper is purchased at a general price of 84,500 VND/kg - an increase of 500 VND/kg.

Similarly,  today's pepper price  in Binh Phuoc province also increased by 500 VND/kg to 85,000 VND/kg.

World pepper prices

According to an update from the International Pepper Association (IPC) on February 15 (local time), the price of Lampung black pepper (Indonesia)  decreased by 0.13%  compared to February 14.

At the same time, prices of Brazilian black pepper ASTA 570 and Kuching (Malaysia) ASTA black pepper remained stable.

According to  peppertrade , the Vietnamese market in the week of June 2024 is considered quiet when most people are busy preparing for the Tet holiday.

At the same time, Muntok pepper prices remained firm due to reduced production and limited raw material supply with strong domestic consumption offsetting weak overseas demand, the market is now tilted towards Brazil.

However, news of crop failure and local currency fluctuations have caused raw material prices to skyrocket from 16 reals/kg previously to 17 reals/kg currently, so although demand is high, supply is very limited. limit.

Overall, most traders are still choosing to wait after Tet in anticipation that Vietnam's incoming crop could bring some relief.

However, when the push comes and the peak does not create enough selling pressure, the current price trend can escalate significantly from current levels.

According to VietnamBiz.vn

Vietnam - Pepper market January 27, 2024: Southeast region increases, US market buys strongly again

Pepper price today January 27 is in the range of 79,500 - 82,500 VND/kg. After 2 days of decline, the domestic pepper market increased slightly again. Pepper prices will increase from the end of 2023 because there is not much inventory left, and the US market suddenly has strong consumption in the last 3 months of 2023.

In Dak Lak and Dak Nong provinces, today's pepper price was purchased at 82,500 VND/kg.

In Gia Lai province, today's pepper price is 80,000 VND/kg.

Meanwhile in Dong Nai, pepper price today is at 79,500 VND/kg, an increase of 500 VND/kg.

In Ba Ria - Vung Tau province, pepper price today is at 81,500 VND/kg, an increase of 1,000 VND/kg.

In Binh Phuoc province, today's pepper price was purchased at 82,000 VND/kg, an increase of 500 VND/kg.

Pepper prices today increased by 500 - 1,000 VND/kg in the Southeast, remaining stable in the remaining localities compared to the same time yesterday. After 2 days of decline, the domestic pepper market increased slightly again.

At the end of the most recent trading session, the International Pepper Community (IPC) listed Lampung (Indonesia) black pepper price at 3,863 USD/ton, down 0.39%; Brazilian black pepper price ASTA 570 is at 3,850 USD/ton; Kuching (Malaysia) ASTA black pepper price remained at 4,900 USD/ton.

Muntok white pepper price was 6,091 USD/ton, down 0.39%; Malaysian ASTA white pepper price is still at 7,300 USD/ton.

Vietnam black pepper price is trading at 3,900 USD/ton with 500 g/l type, 550 g/l type at 4,000 USD/ton; White pepper price is at 5,700 USD/ton.

IPC said that both domestic and international Indian and Indonesian pepper prices tend to decrease this week.

IPC forecasts that global pepper production in 2024 will continue to decrease by 1.1%, equivalent to 6,000 tons. Brazil and India are forecast to increase production this year, while decreasing in Vietnam. Other producing countries can maintain pepper output with negligible changes.

According to the Ministry of Agriculture and Rural Development, Vietnam's pepper area in 2023 will reach 115 thousand hectares, down 5 thousand hectares compared to 2022. Vietnam pepper output in 2023 according to the assessment of the Pepper and Plant Association Vietnam position reaches 190 thousand tons, an increase of 3.8% compared to 2022.

The 2024 pepper harvest has also begun in some districts of Dak Nong province, however the harvest is mainly scattered in some districts and not much. Due to the effects of climate change, this year's harvest is later than last year. Vietnam's pepper output in 2024 is expected to reach 170 thousand tons, down 10.5% compared to 2023.

The Vietnam Pepper and Spice Association in its latest report stated that the average domestic price in early 2023 reached 57,000 VND/kg and stood at the lowest level since March 2021. The price increased at the end of the first quarter and did not change much until November 2023. Entering December, the price continuously increased, sometimes reaching 86,000 VND/kg, causing the average price for the whole month to reach 81,000 VND/kg, an increase 42% compared to the beginning of the year.

The reason for the increase in prices at the end of the year is that there is not much inventory left. The US market suddenly had strong consumption in the last 3 months of the year, especially December 2023 when the import volume reached over 6,200 tons (the highest import month). These may be orders delivered by businesses before the end of the year, so purchases are required.

According to KTĐT.vn

VIETNAM PEPPER MARKET UPDATE 4th MAY 2021 – WEEK 18

PEPPER;

 

The market opened for the 18th week with the price trend going sideways, the disease situation is still quite serious in many different countries, causing anxiety for the whole market. However, there still sees good demand from different markets such as EU / ASIA / USA and even the Middle East. Consumption demand from China in April was generally low due to the tightening of the disease control border. The border between Cambodia and Vietnam is still closed, so it is forecasted that the pepper from Cambodia will not be transferred to Vietnam / Thailand / China as usual.

 

Currently, the raw material from farmers / collectors has a very fast delivery speed. That's why domestic agents and exporter / manufacturers continue to lack local liquidity. Many processors / exporters facing cash flow issue so domestic market temporary slow last 2 weeks.

 

Ramadan Festival & China national holiday will be finished next few more days, so it is likely that demand will be coming more strongly in the next couple weeks.

 

Ocean Freight kept at high cost and space of container continued tight especially to the USA and Canada.

 

Forecast Vietnam currency is firm / steady against the USD until the end of the second quarter.

 

 

CHECK LAST PRICE INDICATIONS FOR VIETNAM PEPPER, CASSIA, TURMERIC, STARANISE..

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VIETNAM PEPPER MARKET UPDATE 26th APRIL 2021 – WEEK 17

 

 

 

PEPPER

 

According to customs data, exports in the first half of April 2021 reached 15,304 tons of pepper, with a turnover of $ 47.90 million, bringing pepper exports in the first 3.5 months of 2021 to 76,296. tons, turnover of USD 227.94 million, decreased by 21.98% in volume but increased by 7.32% in value over the same period last year.

 

The average export price in the period reached 3,130 USD / ton, up 6.07% compared with the average export price in March 2021. We forecast total quantity export in April will reach 34.000Mts at least and first 4 months 2021 Vietnam will export around 95.000 tons (first 4 months 2020 was 116.764 tons).

 

The pandemic Covid-19 outbreak in many countries of the world is causing the consumption of pepper to drop sharply, forcing the price to drop sharply last 2 weeks.

 

In the fact, the export situation is quite bleak, mainly handling old orders delivered in May. Meanwhile, although the harvest is over, there is no sell pressure from farmer as usual. 

 

In general, Vietnam has completed the 2021 pepper crop. Last week, the weather was favorable for plants to grow in the 2022 crop. Due to the slow demand from other markets such as China, the Middle East, and Europe. Along with that, the disease situation is still very complicated in the two pepper exporting countries as India and Brazil, besides farmers household also need to cover labor and fertilizer costs then this week farmers offer more raw material. The price has fluctuating daily last week with a range of 50 - 100 $ / MT. However, almost immediately the market recovered very quickly because farmers / collectors immediately not offer in bulk when market correction.

 

Let look back at the past 4 months and make a more assessment of Vietnam's crop situation in 2021. We would like to send you the data scenarios that are likely to happened during this year to have a more comprehensive view of the price trend in the coming time.

Section	Scenario 1	Scenario 2	Scenario 3
Carryover (2019 – 2020)	50	40	40
Crop 2021	230	200	170
Total Import 2021	30	30	30
Exported in first 4 months	94,5	94,5	94,5
Domestic consumption	10	10	10
Lost weight in process white pepper	10	10	10
Quantity available next 8 months	195,5	155,5	125,5
Possibility	50% ?	50% ?	0%

 

 

Please note;

 

- The data of inventories of the year before 2019 / 2020 passed through is now in stock of farmers / exporters, processor / agents with very low selling pressure (frozen stock).

 

- Every year, inventories (carryover) are usually kept at origin about 10-15% of the total exported volume.

 

According to the above hypothetical scenarios, the third scenario is unreasonable, although this is the number of many people have given up on the market in order to distort the market and not correct source. The scenario easier will be under 1 & 2. Regardless of any scenarios, pepper production in 2021 is not expected to be as abundant as in previous years and supply pressure took place in February and March as you can see (prices increased by 45% within more than 1 month).

 

 

 

 

CHECK LAST PRICE INDICATIONS FOR VIETNAM PEPPER, CASSIA, TURMERIC, STARANISE...
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VIETNAM PEPPER MARKET UPDATE 22ND 2021 – WEEK 8

 

 

 

Vietnam exported 16.896 tons in January 2021 with a turnover of 48.72 million $, down 18.54% in volume and 8.67% in value compared to the previous month, but up 14.43 % in volume and 35.38% in value compared with the same period last year. Average export price in the at 2,884 USD/ton, up 4.23% compared to the average export price of December 2020. Due to the Lunar New Year in February, the number of exports is forecast to decrease compared to January 2021 and reach around 13.500 tons.

Last week the prices have seen an impressive increase from 53,000 VND and reach 55,500 VND today, equivalent to a 4.5% increase within a week. Due to the delivery deadline in Feb, processors and exporters are increasing buying to ensure shipment on time. Currently, the higher demand than before last 2 week, pushing the market prices up slightly in many different areas in Vietnam.

Meanwhile, many agents/collectors have not reopened after Lunar New Year, so the business in domestic markets is still very slow, raw material not profuse on the market.

The weather in key pepper areas is quite favorable, so it is expected that farmers will focus their harvest and plentiful supply in the next few weeks.

The situation of freight rates from Vietnam to EU/US/ASIA/AFRICA is forecast to continue to be tense and there is still no sign of a discount from shipping lines, freight rate is unlikely to decrease as expected in March.

 

 

VIETNAM SPICES MARKET UPDATE 11TH JAN 2021 – WEEK 1&2

 

PEPPER 

Pepper exports in December 2020 reached 23 thousand tons, worth 62 million USD, up 0.3% in volume and 2.5% in value compared to November.

Approximately pepper export in 2020 is estimated at 288 thousand tons, worth 665 million USD, up 1.2% in volume. The average export price is estimated at 2,313 USD/ton, down 7.9% compared to 2019.

Pepper prices from the first week of 2021 are being affected by the news of the Covid-19 epidemic and trade tensions between major countries.

Due to the closure of the countries due to Covid-19 and the political situation in the US and UK, the strained US-China relations affected goods greatly.

At this time, the low price caused speculators to increase buying, but the transaction was still quite bleak.

Vietnam's pepper prices in the short term will be quiet in the absence of supportive factors. The main reason for the recent price drop is the tension situation of the shipping charges and the shortage of containers. Many routes to EU/AFRICA/USA… increased galloping with an increase of 500-7,000 $ per container of export cargo. There is a 1000% increase in just 30 days with some destination in ASIA. This situation may continue, causing the fact that pepper produced in Vietnam cannot be exported much to other countries. Materials are clogged in production warehouses and at ports of destination because some shipping agents cancelled booking/increase price without reason.

Besides, the present time the key pepper province of Vietnam is Daknong province has starting the harvest season, so the export price of pepper lacks a supporting factor.

However, price of pepper at spot market up daily and many customer shortage stock to process because almost all waiting reduce for cost freight. We might be seen huge demand will come again in the market when freight/container space back to normal.

In the medium term, global pepper production will continue to decline as top producing countries do not implement new planting, while the maintenance of existing pepper farms is not focused, many pepper farmers are not growing also focus on profession because the price now not attractive to the farmer. If this situation continues in the next years, the price of pepper will tend to increase in 2021 & 2022.

The exchange rate of Vietnam currency in 2021 is forecast to be about 2% stronger than USD, which will also an increase price in exports from Vietnam compared to previous years.

 

India
India's pepper production in 2021 is likely to be significantly lower than in 2020, The reason is that the cultivation and production of pepper is affected by erratic climate, typically strong winds and heavy rain in Idukki, Wayanad, Coorg districts and some areas in Karnataka state. Currently, the new harvest on the farms is coming. However, many farmers are delaying the harvesting process due to unfavorable weather.

CASSIA 
The market continues to grow strongly when demand is high but inventories have decreased rapidly. Raw material prices are forecasted to continue to rise as demand is high from the EU/USA and ASIA.

 

STAR ANISE

The market increased rapidly due to strong demand, in addition to a serious crop failure in spring due to storms and droughts. It is expected that the price of anise will continue to increase in 2021 while there is very little inventory.

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VIETNAM BLACK PEPPER CROP SURVEY 2020 & 2021 District 2, Hochiminh City, Vietnam.

 

PTEXIM CORP. made an extensive survey of the Vietnam Pepper production areas with the actual situation of the stocks,and plantatiom of cultivated areas foreseing the production and results of the new crop which will be harvested from the beginning of next year.
Below we post the consolidated data and main numbers.
You may get the full & detailed report (42 pages in PDF) by clicking the link at the end of our info

* CROP SIZE 2021 SMALLER BY 20% COMPARED TO 2020
* MAXIMUM ESTIMATED CARRY OVER FORCAST: 45,000 TON
* CARRY-OVER SMALLER BY 40-50% COMPARED TO LAST YEAR

TOTAL AVAILABLE QUANTITY IN VIETAM IN 2020 - 340,000 Mt

- CARRY-OVER FROM 2019 -75,000 Mt
-CROP SIZE 2020 - 225,000 Mt
-IMPORT FROM THIRD COUNTRIES - 40,000 Mt

2020 VIETNAM EXPORTS & CONSUMPTION -292,000 Mt

- DOMESTIC CONSUMPTION - 10,000 Mt
- WHITE PEPPER PROCESS - 8,000
- EXPORTS - 280,000 Mt

ESTIMATED TOTAL AVAILABLE PEPPER IN VIETNAM FOR 2021 - 242,000 Mt

- CARRY-OVER FROM 2020 - 42,000 Mt
- ESTIMATED CROP SIZE - 200,000 Mt
- MAXIMUM CARRY OVER THIS YEAR AS FORECAST 45.000 MTs
Carry over concentrate almost 80 – 90% in middle man and processor/exporters warehouse.
Almost farmer cleared stock already.

Pepper crop affected because farmers are less caring, less fertilizing than beforedue to low prices under cost, intercropping with other fruit trees... the string ofpeppercorn was sparse, the phenomenon of sparse string in pepper spreading fromalmost all key pepper areas of Vietnam.
In addition, the price was low while the labor cost increases steadily every year.
It will significantly affect the yield for the 2021 & 2022 crop.

Pepper prices are lower than production costs, so farmers neglect and do not take careas well as before

Pepper prices will continue to fluctuate at different times. However, the back bottom price will be higher than the previous one and the price increase trend will be about 10-25% next year as foreseen as the crop is severely affected in 2021.

If the price grows well next year, it will stimulate the farmers to re-care and the crop will gradually improve in 2022/2023


PHUC THINH EXPORT IMPORT INVESTMENT CORPORATION (PTEXIM CORP)

 

GET THE FULL REPORT, CLICK HERE
http://ptexim.com.vn/en/news/viet-nam-pepper-crop-survey-2020-2021/