Pepper Talk// Pepper Market Report by Royal Golden// Week 10 – 2024

 

Week 9 ended firm on Saturday at level 96,000 VND per kg after some reported covering from shippers that had happened at level 95,000 VND. 
Overall, since the beginning of the year, black pepper prices have increased by about 14%. Having about an upsurge of 28% for February this year compared to last year same month period, while about 15% beginning March in comparison to last February beginning. 

Speculations continues as most of the farmers are allegedly a firm believer that pepper price cycle is set to a new record high. Further, with coffee and durian that are keeping them well funded, there seems to no selling pressure happening despite a reported 50% harvested crop already with farmers that are opting to store their pepper, waiting at the right time and price to sell it.  

Today, market remains firm, opening up with some buying demand happening. 
Muntok White Pepper remains stable to firm still being influenced by Vietnam bullish trend in addition to raw material that are very scarce.   

Brazil still few offers available. Local material last seen at level 19 BRL/kg.

In terms of ocean freight scenario, with Red Sea situation that continues to impact the capacity and equipment, carriers are announcing GRI/PSS/contingency charges with pressure for the additional cost involve for the rerouting via Cape of Good Hope. Expectations are that the Peak Season quantum will be mitigated or even softens by March month but that would remain to be seen. 

Pepper market on March 3, 2024: Increased from 1,000 VND/kg to 3,000 VND/kg in the past week

 

Pepper prices today  (March 3) fluctuate between 92,000 - 93,500 VND/kg. Last week, the pepper market tended to go up. Compared to the beginning of the week, key provinces recorded the highest increase of 3,000 VND/kg.

According to the survey, the lowest price is currently 92,000 VND/kg recorded in Dong Nai and Gia Lai provinces, increasing by 2,000 VND/kg and 3,000 VND/kg respectively. Next is Ba Ria - Vung Tau province with an increase of 1,000 VND/kg, currently priced at 93,000 VND/kg.

This is also the pepper price recorded in Dak Lak and Dak Nong after increasing by 1,500 VND/kg last week.

Currently, Binh Phuoc province has the highest pepper price of 93,500 VND/kg, an increase of 1,500 VND/kg compared to last weekend.

Update pepper information

The pepper market increased 8% last week and is up 12.6% since January 2024, according to Peppertrade.

On Saturday, February 24, black pepper prices decreased after peaking at 98,000 VND on February 22, 2024. By the end of the week, the price increased to 94,000 VND. Overall, black pepper prices increased by 8% compared to last week. Since the beginning of 2024, black pepper prices have also increased by 12.6%.

Many farmers and agents believe that coffee prices are unlikely to increase by 400 USD/ton this year.

However, black pepper prices are likely to increase by $1000 - $1500/MT in the near future. Therefore, many farmers and agents continue to prioritize selling coffee and switch to storing black pepper, leading to a lower amount of black pepper traded on the market than in previous years.

On many social networking forums (with more than 200,000 members), many farmers have begun to expect that black pepper prices will continue to increase by at least 20-30% in the near future. This has reinforced the psychology of stockpiling black pepper in the farming community. Farmers increasingly believe in the increasing price cycle of black pepper and almost refuse to sell when the market adjusts downward.

According to VietnamBiz.vn

Guatemala origin Cardamom Update: - February 25

Season is nearing its end, with over 85% of the crop harvested. Expectations are that the crop will be 50% less vs last season, worse than expected.
We also believe next crop starting in October will be short again as the damage from the long summer period in 2023 will continue to affect production. 

In terms of demand, with the price increase some destination markets are quiet and profit taking is going on.
We are entering the Ramadan season and significan sales at destination are expected, which will reduce inventories at destination and will generate additional demand from origin after Ramadan. 

Gulfood in this sense was ok, decent sales were done but sentiment was not aggressive. 

Vietnam pepper market update 26th February 2024 – Week 8

 

Pepper Market Up 8% last week and Up 12.6% from Jan 2024.

 • On Saturday 24th Feb, the price of black pepper decreased after reaching a peak of 98,000 VND on February 22nd, 2024. By the end of the week, the price had increased again to 94,000 VND. Overall, the price of black pepper increased by 8% from the last week. Since the beginning of 2024, the price of black pepper has also increased by 12.6%.

 
• Many farmers and agents have the thought that coffee prices may be difficult to increase by an additional $400/MT this year. However, black pepper prices could potentially increase by $1000 - $1500/MT in the near future. Therefore, many farmers and agents continue to prioritize selling coffee and switch to storing black pepper, leading to a lower volume of black pepper being traded on the market compared to previous years.
 
• On many social media forums (with over 200,000 members), many farmers have started to have expectations that black pepper prices will continue to increase by at least 20-30% in the near future. This has strengthened the sentiment of storing black pepper in farming communities. Farmers are increasingly confident in the price increase cycle of black pepper and almost refuse to sell when the market adjusts downwards.

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 22, 2024: 3 reasons pushing pepper prices to touch 95,000 VND/kg

Pepper price today February 22 is in the range of 94,000 - 95,00 VND/kg. Pepper prices today increased by 4,000 - 5,000 VND/kg in the remaining localities compared to the same time yesterday. This is the third consecutive day of strong increase in the domestic market, bringing domestic pepper prices to 95,000 VND/kg.

In Dak Lak and Dak Nong provinces,  today's pepper price was purchased at 95,000 VND/kg, an increase of 4,000 VND/kg.

In Gia Lai province, today's pepper price is at 95,000 VND/kg, an increase of 4,500 VND/kg.

Meanwhile in Dong Nai, pepper price today is at 94,000 VND/kg, an increase of 4,000 VND/kg.

In Ba Ria - Vung Tau province, pepper price today is at 94,500 VND/kg, an increase of 5,000 VND/kg.

In Binh Phuoc province, today's pepper price was purchased at 94,500 VND/kg, an increase of 4,000 VND/kg.

Pepper prices today increased by 4,000 - 5,000 VND/kg in the remaining localities compared to the same time yesterday. This is the third consecutive day of strong increase in the domestic market, bringing the domestic pepper price to around 95,000 VND/kg.

According to preliminary statistics of the Vietnam Pepper and Spice Association, in the first 15 days of February 2024, Vietnam exported 5,687 tons of pepper. Of which black pepper reached 4,886 tons, white pepper reached 801 tons. Total export turnover reached 22.7 million USD. The main export enterprises include: Olam: 615 tons, Lien Thanh: 578 tons and Nedspice Vietnam: 570 tons.

The first half of February 2024 is the period when the Vietnamese market has an extended Lunar New Year holiday, so export volume decreased sharply. It is expected that export volume will increase sharply in the second half of the month due to the accumulation of demand for spot orders in the first quarter of 2024. This is also one of the reasons why pepper prices have increased sharply in recent days.

According to experts, this year people in the Central Highlands and Southeast are having good savings and income from durian gardens and fruit trees, so they are not in a hurry to sell pepper, so it is not easy to "pressure" the price of pepper. pepper.

Another reason must also be mentioned is the purchasing power from Chinese traders. According to experts, usually after the Lunar New Year, Vietnam is in peak autumn, which is also the time when Chinese traders increase their search for sources of goods.

Pepper is mainly used as a spice and in the food industry. It is a product favored by Chinese consumers and widely used in many localities. This year's winter is cold and long, causing many people to turn to hot, spicy dishes such as hot pot, grilled..., in which pepper is one of the indispensable spices.

At the end of the most recent trading session, the International Pepper Community (IPC) listed Lampung (Indonesia) black pepper price at 3,905 USD/ton; Brazilian black pepper price ASTA 570 is at 4,100 USD/ton; Kuching (Malaysia) ASTA black pepper price remained at 4,900 USD/ton.

Muntok white pepper price 6,157 USD/ton; 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.

Pepper exports in January increased sharply over the same period

 

20/02/2024

 According to the Ministry of Industry and Trade, pepper exports in January at the beginning of the year increased sharply in both quantity and value compared to the same period last year.

Vietnam's pepper exports in January 2024 reached 20,000 tons, worth USD 79 million, decreased by 1.4% in volume, but increased by 1.9% in value compared to December 2023.

Compared to January 2023, pepper exports increased by 60.2% in volume and 83.9% in value. Vietnam's average export price of pepper in January 2024 is estimated to reach USD 3,953/ton, an increase of 3.4% compared to December 2023 and an increase of 14.8% compared to January 2023.

In 2023, Vietnam mainly exported black pepper, accounting for 69.51% of the total volume and 70.67% of the country's total pepper export turnover in 2023. Therefore, black pepper export growth has had a positive impact on the entire industry.

According to preliminary statistics from the General Department of Customs, in 2023, black pepper exports reached 184,810 tons, worth USD 643.46 million, an increase of 14.4% in volume and an increase of 1% in value compared to 2022.

In 2023, Vietnam exports black pepper to more than 100 countries and territories around the world. In particular, Vietnam's traditional export markets for black pepper include: China, the US, India, the United Arab Emirates, and the Philippines.

Meanwhile, exports of ground black pepper in 2023 decreased by 17.2% in volume and 19.7% in value compared to 2022, reaching 25,450 tons, worth USD 125.25 million. Our country's traditional export markets for ground black pepper include: US, UK, Netherlands, Japan, and Australia.

According to the Ministry of Industry and Trade, Vietnam is the second largest pepper supplier to China in 2023, with a volume of approximately 3,360 tons, worth USD 13.23 million, an increase of 18% in volume and 1% in value compared to 2022. Vietnam's pepper market share in China's total imports increases from 32.39% in 2022 to 36.57% in 2023.

Kylie Nguyen

https://www.agribank.com.vn/en/ve-agribank/tin-tuc/dtl?current=true&urile=wcm:path:/agbanken/ve-agribank/news/agricultural-markets/pepper-exports-in-january-increased-sharply-over-the-same-period