Pepper prices are forecast to increase sharply on August 9, 2024. According to experts, signs of supply shortage compared to demand will continue to be recorded in the market in the coming time. In addition, rapidly increasing freight costs and port congestion in Asia also affect prices in import markets, and may cause shipping delays, causing prices to increase in the medium and long term.

The Import-Export Department (Ministry of Industry and Trade) stated that the Vietnamese pepper industry will benefit from price in the coming time due to scarce supply. This could also open up opportunities for Vietnam to increase its market share and further consolidate its position in key markets such as the US, China and Europe.

According to the Pepper and Spice Association (VPSA), the shortage of supply will cause pepper prices to continue to fluctuate abnormally in the coming time, as on June 11, when the price increased sharply by VND20,000/kg in the morning but dropped sharply again in the afternoon.

In the domestic market, pepper prices today, August 8, 2024, in the Southeast region continued to decrease by 2,000 VND/kg in some localities compared to yesterday, trading around 135,000 - 137,000 VND/kg, the highest purchase price in Dak Nong, Dak Lak, Gia Lai provinces was 137,000 VND/kg.

Pepper price forecast on August 9, 2024: Supply shortage, will pepper prices increase again?

Specifically, Dak Lak pepper price was purchased at 137,000 VND/kg, down 2,000 VND/kg compared to yesterday. Chu Se pepper price (Gia Lai) was purchased at 137,000 VND/kg, down 2,000 VND compared to yesterday. Dak Nong pepper price today was recorded at 137,000 VND/kg, down 2,000 VND/kg compared to yesterday.

In the Southeast region, pepper prices today decreased by 2,000 VND/kg compared to yesterday. Specifically, in Ba Ria - Vung Tau, it is currently at 136,000 VND/kg, down 6,000 VND/kg compared to yesterday; in Binh Phuoc, pepper prices today are at 135,000 VND/kg, down 5,000 VND/kg compared to yesterday.

Domestic pepper price on August 8 , 2024

Update on world pepper prices from the International Pepper Community (IPC), at the end of the most recent trading session, IPC listed the price of Indonesian Lampung black pepper at 7,211 USD/ton, up 0.49%, and the price of Muntok white pepper at 8,836 USD/ton, up 0.49%.

The price of Brazilian ASTA 570 black pepper was at USD 6,400/ton, down 5.47%. The price of Malaysian ASTA black pepper remained stable at USD 8,500/ton; the price of this country's ASTA white pepper reached USD 10,400/ton.

Vietnamese black pepper prices remain high at 6,000 USD/ton for 500 g/l; 6,600 USD/ton for 550 g/l; and 8,800 USD/ton for white pepper.

On a macro level, major stock markets around the world have just experienced a sharp decline and shake-up, amid investors' concerns that the US economy will slow down much more suddenly than expected.

China's economic growth is not as expected, and it is also slowing down. This causes people's spending needs to tighten or inventory is still sufficient, causing China to continue to limit pepper purchases from Vietnam.

Currently, pepper prices in the Chinese market are lower than those in Vietnam, which may be the main reason for the restriction on pepper imports from Vietnam.

Regarding global supply, it is supplemented when Indonesia enters the harvest season. In a meeting at the end of July, the Vietnam Pepper and Spice Association assessed that the next crop's output may be equivalent or slightly higher than in 2024. In addition, pests and diseases still exist but are not significant. The above information reduces concerns about future supply, pushing the market down.

Experts also do not rule out that many market participants are forcing pepper prices down sharply to collect goods this time.

*Information for reference only. Prices may vary depending on time and location.