Vietnam pepper prices are likely to continue their upward trend after the May Day holidays
Vietnam pepper prices are likely to continue their upward trend after the May Day holidays due to several factors:
Decreased Supply
Vietnam’s pepper production has been declining in recent years, with output reaching around 164,000-180,000 tons. Global consumption, however, is rising steadily at 2.5% annually.
Increased Demand
Demand for pepper is recovering, especially in China, with the approaching holidays contributing to increased demand. The US and EU markets are currently on hold, but purchases are expected to pick up.
Higher Transportation Costs
Rising transportation costs are also contributing to higher pepper prices.
Shift to More Lucrative Crops:
Many farmers are shifting to more remunerative crops like avocado and durian, potentially reducing pepper production further.
Current Price Trends
The export price of Vietnam’s black pepper is currently stable at $7100 per ton for the 500 g/l type and $7200 per ton for the 550 g/l type. Domestic prices are inching higher, ranging from VND 156,000 to VND 158,000 per kilo.Locals feel after holidays prices are likely to open at 162,000 VND to 164,000 VND per Kilo
Given these factors, the Vietnam Pepper Association anticipates that the export value of pepper will reach an impressive $1 billion for the year 2025 . Prices may continue to rise due toGlobal Pepper Shortage. Global pepper production is expected to be insufficient to meet consumer demand in the next 3-5 years.
Speculation and Price Volatility
The market is showing signs of speculation, which could further drive up prices. Prices will remain very volatile and your timing of making a decision is very crucial this year .
Chinese entry into Vietnam Market
Local collectors are expecting the much awaited Chinese entry into the market after
May Day Holidays as they have reportedly
Depleted most of their iron stocks which can change the complete direction of the Market.
Following are the indicative prices today for May Shipment FOB Hochiminh
Whole Black Pepper 500 gl Asta cleaned with Max 10% Light Berries Moisture Max 12.5 %
Extraneous matter 0.2 % USD 7100 Pmt
Whole Black Pepper 550 gl Asta cleaned with Max 5% Light Berries Moisture Max 12 %
Extraneous matter 0.2 % USD 7200 Pmt
Whole Black Pepper 570 gl Asta cleaned with Max 2% Light Berries Moisture Max 12%
Extraneous matter 0.2 % USD 7350 Pmt
DW White Pepper Asta cleaned Min 650 gl
Moisture Max 13 % extraneous matter 0.2 %
USD 10050 pmt
Prices subject to reconfirmation and unsold
Please call us for your requirements of pesticide compliance and Asta cleaned Steam Sterilised Black and White Pepper needs . Near term coverage is advised as prices are expected to rally any time soon .
Best Regards
Jojan Malayil
United Spice Co Ltd/ Vietnam
+91 9895 4242 90
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