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Pepper monthly report October

Vietnam pepper monthly round-up October 2021

MARKET FORCAST:

The IPC announced that the decrease in global pepper production in 2021 is greatly, due to an 8% decrease in Vietnam’s output, while Brazil’s output remains stable and Indonesia’s production increases by 3%.

It is forecasted that the global pepper price will increase in the coming time due to scarce supply and high demand at the end of the year.

Inventory

It is estimated that the amount left takes account of around 10% of total supply until now. 

According to Mr. Le Hoang Tai – Ministry of Industry and Trade, the amount of pepper almost runs out and if the price continues raise, it will release all the volume of pepper inventories from previous years.

The US is Vietnam’s largest pepper import market with 50,939 tons, up 8.9% over the same period. In the EU, import increased by 3.9%

Meanwhile, in Asia, imports decreased by 9.7%, of which China’s imports decreased by 16.5% to 37,283 tons.

Shipment

As in latest report from the General Department of Vietnam Customs, in October 2021 Vietnam has exported 16,759 tons, with a turnover of 72.6 million USD. Compared to September, export volume increased by 9.3%, turnover increased by 17.3%.

Progressively from January to the end of October 2021, Vietnam has exported 229,736 tons with a turnover of 791.2 million USD, compared to the same period in 2020, the export volume decreased by 5% export turnover increased by 45.8%.

Price

The price of black pepper in the month quite fluctuated, in the first half of October it increased from 82000 VND to 91000 VND in Dong Nai, Binh Duong and from 80000 VND to 89000 VND in DakLak due to the demand of factories to buy for their production plan when returning to the new normal and gradually decreased at the end of the month at 89000 VND in Dong Nai and 87000 in DakLak.

Supply

Now is the end of the season, people almost no longer have pepper, only those with large capital dare to store goods waiting for prices to rise. With the current price, pepper farmers are assured of profit and excited to invest in the new crop. However, recognizing the fact, not many growers benefited from the market, but mainly some speculators.

Weather

The average rainfall in October is good, higher than the 5-year average. Rainy days mainly fall in the first half of the month, in the second half of the month, the average rainfall is relatively low from 3.5 – 4 mm.

Other

Covid situation in Vietnam is raising, 921,000 cases in total till 31st October 2021.

In particularly, Covid starting to spread to all other cities beside Ho Chi Minh City and Binh Duong Province such as: Ha Noi, Ha Giang, DakLak and various South-West provinces including An Giang, Kien Giang, Tay Ninh, Can Tho, Bac Lieu.

Disclaimer

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Source: Simexco team.

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