Pepper prices on 08/08/2024: 3rd consecutive day of sharp decline

Pepper prices on August 8 globally

Globally, pepper prices on August 8 remain stable.

Black pepper from Lampung, Indonesia, is holding steady at $ 7,211/ton. White pepper from Muntok, Indonesia, remains at $ 8,836/ton.

In Malaysia, Kuching ASTA black pepper is priced at $ 8,500/ton, while white ASTA pepper from Malaysia is at $ 10,400/ton.

In Brazil, ASTA 570 black pepper is trading at $ 6,400/ton.

In Vietnam, black pepper for export, grade 500 g/l, is trading at $ 6,000/ton; grade 550 g/l is at $ 6,600/ton. White pepper for export remains at $ 8,800/ton.

Global pepper prices today show no new changes. According to experts, several factors have contributed to recent fluctuations.

On a macro level, major global stock markets have recently experienced significant declines and volatility, amid concerns that the U.S. economy may slow down much more abruptly than expected.

China’s economic growth has also been slower than forecast, resulting in tighter consumer spending or sufficient inventory levels, which has led China to continue limiting its pepper imports from Vietnam.

Currently, pepper prices in China are lower than those in Vietnam, which may be a primary reason for the restriction on importing Vietnamese pepper.

The global supply has been supplemented as Indonesia enters its harvest season. In a late July meeting, the Vietnam Pepper Association stated that the upcoming harvest's output might be comparable to or slightly higher than that of 2024.

Additionally, while pest issues persist, they are not significant. This information alleviates concerns about future supply, contributing to the market decline.

Experts also do not rule out the possibility that some market participants are driving down pepper prices to accumulate stock during this period.

Thus, global pepper prices on 08/08/2024, remain stable compared to yesterday.

Pepper prices on August 8 domestically

In the domestic market, pepper prices have decreased by an additional VND 2,000 compared to yesterday.

Specifically, in Dak Lak, the price is VND 137,000/kg.

In Dak Nong, the trading price is VND 137,000/kg.

In Gia Lai, the price stands at VND 137,000/kg.

Traders in Dong Nai are buying at VND 136,000/kg. In Ba Ria - Vung Tau, it is VND 136,000/kg.

In Binh Phuoc, the price has fallen to VND 135,000/kg.

Domestic pepper prices have decreased by an additional VND 2,000 today - marking the third consecutive day of significant decline. The price of this agricultural product has now dropped to around VND 137,000/kg.

According to data from the General Department of Customs, Vietnam's pepper exports in the second quarter of 2024 reached 84,609 tons, valued at $ 394 million. This represents a substantial increase of 49% in volume and 67.1% in value compared to the first quarter, as well as a 10.5% increase in volume and a 57.5% increase in value compared to the second quarter of last year.

In total, for the first six months of the year, pepper exports reached 141,392 tons with a revenue of $ 629.9 million. Compared to the same period last year, this represents a 7.4% decrease in volume but a 30% increase in value due to higher prices.

The average export price of pepper in the second quarter was $ 4,657/ton, up 12.1% from the first quarter and 42.5% from the second quarter of 2023. Over the first six months of the year, the average price increased by 40.7% compared to the same period last year, reaching $ 4,455/ton. In June alone, the export price reached $ 5,058/ton, the highest recorded in the past seven years (since June 2017).

Regarding the types of pepper, whole black pepper accounted for 74.6% of Vietnam's total pepper exports in the first half of the year, followed by ground black pepper at 12.9%. Whole white pepper made up 8.1%, with ground white pepper at 3.6%, and a small share of 0.8% consisting of pickled, raw, and other types of pepper.

Thus, domestic pepper prices on 08/08/2024, are trading around VND 135,000 - 137,000/kg.

$ 1 = VND 24.950 - Source: Vietcombank.