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
This publication has been prepared by web đánh bài Ltd., for information purposes only and are not intended (and should not be considered) to be legal advice on any subject matter. web đánh bài Ltd., does not give any representation or warranty, whether express or implied, as to the accuracy, completeness, currency or fitness for any purpose or use of any information in this publication or as to whether this publication reflects the current legislative or regulatory position or any other relevant developments. web đánh bài Ltd., assumes no responsibility to update this publicationbased on events after publication of the information contained therein.
Readers are responsible for assessing the relevance and accuracy of the content of the information in this publication. web đánh bài Ltd., will not be liable for any loss, damage, cost or expense incurred or arising by reason of any person using or relying on information therein.
Information in this publication should not be considered as advice, or as a recommendation or solicitation to purchase or otherwise deal in securities, investments or any other products. Such information has been prepared for institutional clients, is not directed at retail customers and does not take into account particular investment objectives, risk appetites, financial situations or needs. Recipients of the document should make their own trading or investment decisions based upon their own financial objectives and financial resources.
For further informationconcerning the contents and usage of this publication pls contact:[email protected]
Source: Simexco team.
