Vietnam pepper prices hold steady as farmers and traders hoard tock

VINAGRI News - Vietnam’s domestic pepper prices remained stable today, September 30th, hovering in the range of 148,000 - 150,000 VND/kg. Market intelligence suggests that farmers and traders continue to hold onto their inventory, reluctant to sell at the current price levels. Globally, Indonesia's pepper price has seen an uptick.

Domestic market update

As of this morning, domestic pepper prices across Vietnam were consistently maintained within the 148,000 - 150,000 VND/kg range, translating to approximately $5.60 - $5.68/kg.

Specifically, pepper in Dak Lak, Ba Ria - Vung Tau, and Dong Nai is trading at the highest level of 150,000 VND/kg. Dak Nong stands at 149,000 VND/kg, while Binh Phuoc and Gia Lai are commonly priced at 148,000 VND/kg.

International market movement

At the close of the most recent session, the International Pepper Community (IPC) reported that Lampung black pepper (Indonesia) was quoted at $6,984/ton, marking a 0.56% ($45/ton) increase from the previous day.

Prices in other major producing countries were generally stable:

Brazil Black Pepper ASTA 570 was quoted at $6,500/ton.

Kuching Black Pepper (Malaysia) was at $9,600/ton.

For Vietnam's export black pepper, prices continued to fluctuate in the range of $6,600 - $6,800/ton for the 500 g/l and 550 g/l grades.

White pepper quotes

Muntok white pepper (Indonesia) reached $9,897/ton, an increase of $56/ton over the prior session. In contrast, Malaysia ASTA white pepper remained stable at $13,000/ton. Similarly, Vietnam's white pepper maintained its price level at approximately $9,250/ton.

Market drivers and outlook

The market is receiving some support from moderate demand from China. Price volatility in the coffee market is also influencing pepper, as some traders are reportedly selling off pepper inventory to transition into coffee trading. Despite this, the primary underlying factor is the continued withholding of stock by farmers and traders, who are holding out for higher prices.

Weather and crop conditions

A series of tropical storms brought rain to Vietnam's Northern and Central provinces over the past month. Fruit set is currently underway in most pepper growing areas. However, prolonged rainfall has been recorded in many parts of the Central Highlands, leading to non-uniform flowering and promoting greater vegetative growth.

NPK/ Vinagri News