Pepper prices on 11/1/ 2023: Sharp decrease in October 2023

Pepper price on 1/11 in the world

In the world, the pepper market on November 1 had no new fluctuations in all countries.

Accordingly, the price of Lampung black pepper in Indonesia is anchored at $ 4,021/ton. The price of Muntok white pepper in this country remains at $ 6,092/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/ton, respectively. The export price of white pepper remained at $ 5,100/ton. 

World pepper prices simultaneously fluctuate sideways. Last week, the market price fluctuated slightly. 

Accordingly, Indian pepper prices continue to remain unchanged. Although the Sri Lankan Rupee decreased by 1% against the USD, Sri Lankan domestic pepper prices remained stable over the past 2 weeks.

In Southeast Asia, in the context of the Indonesian Rupiah falling 1% against the USD, the country's domestic and export pepper prices recorded a decrease last week. 

Malaysian domestic pepper prices recorded a decrease in the past 2 weeks due in part to the impact of the Malaysian Ringgit decreasing by 1% against the USD. Meanwhile, export pepper prices remained stable and unchanged. 

Royal Golden's pepper market report stated that exporters are still on the sidelines because demand from the US and EU is still difficult to grasp for spot goods transactions.

In Indonesia, the market price decreased slightly due to the devaluation of the local currency. However, Muntok's inventory position is not promising, the volumes will likely be only enough for local consumption. 

In Brazil, although prices are at a better level than in other countries, the current situation is not promising. The country is experiencing a historically severe drought due to a lack of rain. Para's pepper harvest next year reported a crop failure. Additionally, logistic problems cause goods delivery to be difficult.

Thus, world pepper prices on 11/12023 are unchanged compared to yesterday.

Pepper prices on 11/1 in the country

Domestically, the pepper market on November 1 remained stable compared to yesterday.

Specifically, Dak Lak and Dak Nong purchased pepper at VND 67,000/kg; 

In Gia Lai, pepper price is trading at VND 65,500/kg;

In Dong Nai, traders continue to purchase at VND 66,500/kg;

The latest pepper price in Ba Ria - Vung Tau is VND 68,500/kg;

Binh Phuoc continues to trade pepper at VND 68,000/kg.

Domestic pepper prices today remain stable with the highest purchasing price level at VND 68,500/kg. In October 2023, the domestic pepper market price decreased by VND 3,000 - 3,500/kg. This occurs in the context of the USD affecting exports and the war in the Middle East causing concerns for economies.

Ms. Hoang Thi Lien - President of VPA assessed that the world's geopolitical context has affected the global market, including oil prices and the world trade situation in general. Many countries are in a state of foreign currency scarcity. Vietnam depends on the export market, so it has witnessed a decline in commodity industries in general, and the spice industry is no exception. 

In addition, macro management policies, purchasing power, and consumption power of major markets, including the US and EU, which are the key markets, will be unlikely to recover in the short term.

According to the general assessment of domestic businesses, the 2024 pepper crop will decrease by about 10-15%, with an estimated harvest output of 160 - 165 thousand tons. The current problem is how to stabilize prices to help people stabilize their acreage in the face of having to compete with other crops. However, this decrease is still lower than the decrease in global consumption demand, so it is forecast that pepper prices will be difficult to increase continuously in the long term. 

Thus, the domestic pepper price on 11/1/2023 is trading around VND 65,500 - 68,500/kg.

$ 1 = VND 24,380 - Source: Vietcombank