Supply decreases, prices can be anchored at high levels

Pepper price forecast on May 28, 2024, due to scarce supply, the price of this agricultural product is expected to remain at 119,000 - 120,000 VND/kg.

In recent years, pepper prices have remained low for a long time, causing a decrease in acreage, which is one of the main reasons for the recent increase in pepper prices. In addition, there is also the impact of the dry weather in April in the Central Highlands.

In addition, the shortage of empty containers has pushed up sea freight rates by an average of 30% in recent weeks and is expected to continue to increase, making the prices of agricultural products, including pepper, more expensive.

Pepper price on May 28 may continue to increase

Previously, on May 27, 2024, pepper prices in the Central Highlands and Southeast regions continued to increase by 1,000 VND/kg. Specifically, Dak Lak pepper prices were purchased at 119,000 VND/kg, an increase of 1,000 VND/kg compared to yesterday's price; Chu Se pepper price (Gia Lai) was 119,000 VND/kg, an increase of 1,000 VND/kg compared to yesterday; Dak Nong pepper prices recorded an increase of 500 VND/kg, to 119,500 VND/kg.

In the Southeast region, pepper prices also increased by VND1,000/kg. Accordingly, in Ba Ria - Vung Tau, it reached a peak of VND120,000/kg; in Binh Phuoc, it reached VND119,000/kg; and in Dong Nai, it was also at VND119,000/kg.

Notably, despite the high prices, pepper growers have limited their sales. The reason is that many people still hope that pepper prices will increase even more in the coming time. Compared to the end of April 2023, domestic pepper prices have increased by about 22%. This price also increased by nearly 50% compared to the beginning of the year and increased by nearly 65% compared to the same period last year.

Local	Purchase price (Unit: VND/kg)	Change from yesterday (Unit: VND/kg)
Dak Lak	119,000	+1,000
Gia Lai	119,000	+1,000
Dak Nong	119,500	+500
Ba Ria - Vung Tau	120,000	+1,000
Binh Phuoc	119,000	+1,000
Dong Nai	119,000	+1,000

(Domestic pepper price list on May 27, 2024)

* Information for reference only. Prices may vary by location.

In the world market, the pepper price update from the International Pepper Association (IPC), early this morning (Vietnam time), showed that the trading price of Lampung black pepper (Indonesia), the purchasing price of Brazilian black pepper ASTA 570 and the price of Kuching black pepper (Malaysia) ASTA remained stable. The price of white pepper (Indonesia) was traded at 7,179 USD/ton. The price of Brazilian black pepper ASTA 570 was traded at 5,000 USD/ton. The price of Malaysian black pepper ASTA remained at 4,900 USD/ton. The price of Malaysian white pepper ASTA was 7,300 USD/ton.

Pepper prices of all types on the Kochi floor (India) remained unchanged compared to yesterday. Of which, Garbled traded at 60,600 Rupees/100kg, UnGarbled at 58,600 Rupees/100kg.

In recent weeks, global meteorological agencies have reported an increasing likelihood of a La Nina weather phenomenon occurring around June-August 2024. This could create favorable conditions for crop growth in South Asian countries, including pepper.

In Vietnam, the pepper harvest has ended. The dry and hot weather since December has been favorable for harvesting and drying this product. This has also improved the quality of pepper products.

Source: https://congthuong.vn/du-bao-gia-tieu-ngay-2852024-cung-giam-co-the-neo-gia-o-muc-cao-322665.html