Pepper Prices drop 25% from the peak in 14 days

Black and White Pepper Prices which increased 85% in just 4 weeks dropped 25% in 12 days with buyers deciding not to follow the ever increasing domestic prices and delay or default shipments which was a chain of action from farmers to collectors and collectors to exporters making pepper trade impossible for the entire supply chain .Although some Chinese buying was reportedly done for White pepper at higher levels Black pepper did not get any support worthwhile from Chinese traders.

Vietnam has exported over 130,000 tons, equivalent to 72.5 % of estimated output of 2024 till mid of June this year, shows that the supply for export is not much left till the new crop arrival of 2025 though the imports so far till mid June is only 17409 mts which is comparatively lower than previous years. A decent correction was expected from the recent highs and the current drop is a trend for further lower prices

Or a small window of opportunity for those who were caught in the rally for some breath taking as well as a chance to cover for immediate needs

Demand for pepper in the USA increased sharply

The amount of US pepper imports increased by 24.5% over the same period last year. In which Vietnam is the main supplier, accounting for 76% of the market share.

According to the Vietnam Pepper and Spice Association (VPSA), in the first 5 months of the year,

In particular, the US surpassed China to return to the leading position in Vietnam’s largest pepper export market with a volume of 30,466 tons, accounting for 26.6% of the market share and an increase of 44.4% over the same period. period.

According to data from the US International Trade Commission (USITC), the country’s demand for pepper imports is increasing strongly again after two consecutive years of decline due to the impact of inflation and rising interest rates.

Please call us to discuss your buying strategy for July shipment.

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Pepper Prices drop 25% from the peak in 14 days