Excessive Speculation in Vietnam Spoils Global as high as 185 K Pepper Mart

Heavy Speculative buying which started after May Day Holidays which brought prices as high as 85% from the beginning of the year without much quantities involved as farmers have sold 95 % of the crop between 90-98 K Vietnam  Dongs per kilo because of higher returns compared to previous year and almost 130 k pepper exported till 15 th June from an estimated crop size of 157 to 170 K depending on the conclusions of different agronomists of both domestic multinational companies for 2024 with a very nominal carry over of 35 K mt and demand started outplaying supplies  local speculators entered the market knowing fully well that most of the exporters are short pushing up the market by US$ 500 pmt and Certain days even US$ 1000  making it impossible for the exporters survive. Local collectors and processors started 

With farmers selling most of their holdings except very rich farmers and exports estimated till end of June 2024 at 140 K and imports for the same period pegged 20k imports from Cambodia and Laos through borders estimated at 15000 mt so far available pepper inventory left with Vietnam  is very alarming though new crop arrivals beginning in July in  and Indonesia  will bring some respite in pricing but over all situation of supplies and weekly increase in ocean freight can disturb the trade In the third and fourth quarter as the output in Brazil ( 70,000 mt ) and Indonesia (25000 mt) for 2024 won’t be enough to meet the global demand for 2024. Follow market daily and take your buying decisions accordingly.