Pepper prices on 08/06/2024: Domestic prices drop by VND 6,000

Pepper prices on August 6 globally

The global pepper market showed no new fluctuations on August 6.

Accordingly, the price of black pepper Lampung in Indonesia remains at $ 7,176/ton. The price of white pepper Muntok from this country is stable at $ 8,793/ton.

The price of black pepper Kuching ASTA in Malaysia is maintained at $ 8,500/ton, and white pepper ASTA in this country is at $ 10,400/ton.

In the Brazilian market, the price of black pepper ASTA 570 is traded at $ 6,750/ton.

In Vietnam, the price of exported black pepper 500 g/l is traded at $ 6,000/ton, while the 550 g/l type is priced at $ 6,600/ton. The price of exported white pepper remains at $ 8,800/ton.

The global pepper market remains stable today. Yesterday, most asset classes experienced a sharp decline, with stock markets crashing, the USD falling sharply, and gold plummeting... This trend defies the usual rule where an increase in the USD generally leads to a decrease in gold prices, and vice versa.

The global stock markets had a catastrophic trading session on August 5, which can be considered one of the worst in decades.

These impacts have affected the pepper market specifically and other commodity markets generally.

Thus, the global pepper prices on 08/06/2024, remain unchanged compared to yesterday.

Pepper prices on August 6 domestically

In the domestic market, pepper prices have dropped significantly by VND 6,000 compared to yesterday.

Specifically, in Dak Lak, pepper is being purchased at VND 141,000/kg.

In Dak Nong, the price of pepper today is VND 141,000/kg.

In Gia Lai, the pepper price has fallen to VND 140,000/kg.

Traders in Dong Nai are buying pepper at VND 141,000/kg.

Similarly, the price of pepper in Ba Ria - Vung Tau has dropped to VND 141,000/kg.

In Binh Phuoc, the pepper price is also at VND 141,000/kg.

Today, the price of pepper in the domestic market has dropped significantly, falling to around VND 141,000/kg.

Over the past month, domestic pepper prices have remained stable after reaching an eight-year high of VND 180,000/kg in June 2024.

As of early August 2024, pepper prices in the Central Highlands, Ba Ria - Vung Tau, and Dong Nai are fluctuating around VND 148,000/kg. Previously, in the first six months of this year, the price of this commodity saw a substantial increase of 125%, rising from approximately VND 80,000/kg at the beginning of the year to VND 180,000/kg in mid-June due to market concerns over supply shortages.

Domestically, pepper faces increasing competition from durian and coffee crops. New pepper planting areas are limited, mostly intercropped with coffee.

VPSA estimates that Vietnam's pepper production in 2024 will be about 170,000 tons, a 10% decrease compared to last year, marking the lowest level in the past five years.

Data shows that by the end of June, Vietnam had exported approximately 142,500 tons of pepper, with a value of $ 634 million, down 6.8% in volume but up 30% in value compared to the same period in 2023.

This means there are still 7-8 months until the next pepper harvest season (expected after the Lunar New Year in February 2025), while the remaining stock in traders' and companies' hands is limited.

The domestic supply of pepper is under pressure with reduced production, and forecasts suggest a decline in pepper output in other countries such as Brazil and Indonesia this year. This will continue to put pressure on pepper prices in the later months of the year.

According to VPSA, the supply shortage will lead to further price fluctuations, similar to the significant changes observed on June 11, when prices surged by VND 20,000/kg in the morning but fell sharply in the afternoon.

Thus, the price of pepper in the domestic market on 08/06/2024 is trading around VND 140,000 - 141,000/kg.

$ 1 = VND 24.950 - Source: Vietcombank.