In general, the market is sparsely traded, in the context of cash flow shifting to coffee. This year, coffee prices are high, so traders of this item need more capital, leading to some selling pepper to get money to do business. Most of those who have kept pepper until now want to wait for prices to increase further before selling.

Looking at the prospect of increase, purchasing power from China and the year-end festival season are expectations for the market. In addition, the forecast of Vietnam's harvest next year being delayed by 1 month also causes doubts for the market. Recently, the world market has been supplemented with a large amount from Indonesia's harvest, China has taken the opportunity to buy a lot from this source. However, after Indonesia's harvest, the supply until February next year has not been significantly supplemented. This is a great advantage for Vietnamese pepper before entering next year's harvest.

Brazil is currently the second largest producer and exporter of black pepper in the world after Vietnam, accounting for 17 - 18% of global supply. However, the country's pepper exports are facing the risk of falling for the third consecutive year due to crop failure.

 

T.Huong

Source: Vitic/kinhtedothi