Pepper prices on 10/27/2023: Maintaining stability

Pepper prices on October 27 in the world

Around the world, the pepper market price on 10/27 is slightly decreasing in Indonesia. 

Accordingly, the price of Lampung black pepper in Indonesia decreased by 0.39%; about $ 4,088/ton. The price of Muntok white pepper in this country also decreased by 0.39%; to $ 6,156/ton. 

Malaysia's Kuching ASTA black pepper price remained stable at $ 4,900/ton; This country's ASTA white pepper is still priced at $ 7,300/ton.

For the Brazilian market, the price of ASTA 570 black pepper remained at $ 3,100/ton.

In Vietnam, export prices of 500 and 550 g/l black pepper are at $ 3,500 and $ 3,600 USD/ton, respectively. The export price of white pepper remained at $ 5,100/ton.

World pepper prices continued to decrease slightly in Indonesia but remained flat in other markets. 

The demand is there, but due to the war situation, inflation, interest rates, and partly because of the merchandise remaining in inventory, buyers are still hesitant. Due to the impact of the economic crisis, this is the first business year in which many businesses have reduced orders for the whole year. 

According to estimates, next year's output is expected to decrease in India by 20%, Indonesia by 20-30%, Vietnam by 15%, and Brazil by 15%. The 3 major countries are all decreasing, so Brazil's increase will not be much support, it is predicted that prices will increase next year, a period of price increase in the price reduction cycle.

Thus, world pepper prices on 10/27/2023 continued to decrease in Indonesia compared to yesterday.

Pepper prices on October 27 in the country

Domestically, the pepper market on October 27 remained stable compared to yesterday. 

Specifically, Dak Lak and Dak Nong continue to purchase pepper at VND 68,500/kg;

In Gia Lai, pepper prices are still trading at VND 67,000/kg;

In Dong Nai, traders continue to buy at VND 68,000/kg;

The latest pepper price in Ba Ria - Vung Tau is flat, remaining at VND 70,000/kg;

Binh Phuoc's price remained unchanged, trading at VND 69,800/kg.

Domestic pepper prices today have no new fluctuations, with the highest price level reaching VND 70,000/kg.

The domestic pepper market will likely continue to be stable in the last months of the year when importers have almost bought enough goods at present. However, with Vietnam's output forecast to decline, global demand for pepper is likely to exceed supply and push prices up next year.

Recent reports from Nedspice Group and Simexco Daklak both share the same opinion that Vietnam's pepper output will decrease by 15% in 2024. Weather conditions in the coming months will significantly affect the next crop's yield. 

According to a survey by Simexco Daklak, pepper supply in Vietnam is gradually decreasing due to low crop productivity and reduced profits. Current inventories are estimated to be only about 15,000 - 20,000 tons and the next harvest is expected to produce only about 140,000 - 150,000 tons, a significant decrease compared to last year.  

Many farmers have switched to growing other crops that provide regular and higher income, such as durian. The remaining area has a large number of old plants with low productivity. In addition, rainy weather over the past few weeks has also caused some concerns about pesticide control. 

Thus, the domestic pepper price on October 27, 2023, is trading around VND 67,000 - 70,000/kg.

$ 1 = VND 24,360 - Source: Vietcombank