Last 2 weeks, the price of black pepper increased from 84,000 VND to 87,000 VND, equivalent to a 3.6% increase.
There is a significant demand from various markets such as the US, EU, Asia, and Africa for immediate delivery orders in the first quarter of 2024.
The largest market, China, continues to not participate in purchasing for the new 2024 crop.
Vietnam has started a long Tet holiday and will resume work on February 15, 2024. Farmers/ collectors start to work again on February 19th, 2024
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
Pepper Talk
VN market is seen quiet opening this week as most of them are busy preparing for the TET holiday. Offers are very limited refusing to bet for forward positions due to an anticipation that China’s demand will further increase after TET.
Muntok remains firm due to declining production and limited raw supply with its strong local consumption that makes up with its weak overseas demand.
Everyone now is leaning towards Brazil. Unfortunately, news of its bad crop situation and fluctuating local currency have prompted raw prices to jumped up from earlier 16 BRL/ kg to now at 17 BRL/kg. Hence, though demand is high, offers are very limited.
Overall, most are still found on a sideline opting to wait after TET in anticipation that Vietnam’s crop arrival could bring some relief. However, when push comes to shoves, and peak arrival fails to give enough pressure to sell, direction with current prices could then therefore escalate significantly beyond current levels.
For your pepper requirements, please get in touch with our sale's team.
Royal Golden Trading, Dubai
Last week, the price of black pepper quite rapid fluctuations throughout the day. By the end of the fourth week, the price almost unchanged.
The high demand from the EU and USA markets for immediate delivery orders has contributed to a relatively stable growth in the market recently.
Vietnam will begin a long holiday period from February 8th to February 14th (most will have a holiday from February 8th to February 18th). Therefore, during this time, the market is expected to have fewer transactions.
Agents and exporters will be cautious during the holiday period as they are concerned about rapid market changes if China enters the market.
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
Friday 26
th Jan 2024
General: IDR has weakened considerably this week and made exports more viable. But the disparity continues. How long will this last
is anybody’s guess. It is raining heavily at the origins. We will gradually get more clarity on the crop situation and keep updating you
accordingly.
Cloves: Indonesian Clove is gradually taking the centerstage while Madagascar offers are getting fewer by the day. After three years
of crop failure, it looks like this year we should witness a reasonably good crop. There were about 4 months of extreme summer, with
temperature touching almost 40 degrees Celsius. Thereafter, rains have started past one month. This could be an ideal situation for a
good crop. In a month or so, we should start getting fresh arrivals. Crop is localized, to the extent that while one village has harvest,
the adjacent one does not have one. Hence, it is difficult to say at this point what will be the total crop. And for sure the levels will not
go down to that of 2020.
Price indication U$ 9,500
Mace: Demand is rising, and so is the local price. A harvest is expected now, but heavy rains and poor weather conditions have made
picking and drying more difficult. If rain continues for long, we will witness too many Brokens and Off Grades. In addition to that,
movement of cargo from origin to destination has become very difficult. Vessel delays are common.
Price indications:
Mace Grade A: $18,500/MT (PP)
Mace Grade B: $18,000/MT (PP)
Mace Papua HPS: $18,000/MT (PP)
Mace Off Grades: $13,000/MT (PP)
Nutmegs: Same as Mace.
Price Indications:
Nutmegs ABCD: $7900/MT (Jute)
Nutmegs SS (EU): $9000/MT (PP)
Nutmegs BWP (No Guarantees):
$5000/MT (PP)
Long Pepper: Past two months, there was an acute shortage. Now that rains have arrived, there will be fruiting, but maturity will come
only after about 2 months.
Price Indications:
Long Pepper A: $5750/MT (Jute)
Long Pepper B: $5500/MT (Jute)
Turmeric & Cubebs: Season is over, and old stocks are coming out now which are high in price.
Soumen
Pt. Mahalaya Agri Corp
Surabaya, Indonesia
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