Vietnam pepper monthly round-up September 2021
MARKET FORCAST:
The decline of exports in the third quarter of 2021 is the reason why pepper prices “explode” from the beginning of October 2021 until now. The reason is because, after easing the distance, exporters are forced to deliver goods according to the contract, after delaying due to the hindering epidemic. Besides, there is also the return of Chinese traders. Agents and export companies also buy goods into the warehouse. According to experts, exports in October 2021 will increase sharply. New orders to serve the world’s demand during the year-end Tet holiday.
Covid situation in Vietnam is reducing, around 5000 cases per day, 880,000 cases in total.
INVENTORY:
According to updated Simexco’s data, total inventory of Vietnam pepper has lessened greatly. It is estimated that the amount left early reached the low of 60,000 tons in September.
SHIPMENT:
From January 1 to September 30, 2021, Vietnam exported 212,983 tons with a turnover of 719.16 million USD, compared to the same period in 2020 the export volume decreased by 3.2%, but export turnover increased 47%
So far, US and Europe are showing great interest for Vietnam pepper. As per VPA latest report, import from US increased 11.7%, reached 46.996 tons in comparison to last year. Meanwhile, EU import raised 3.2%, top market is Germany and Finland.
In contrast, importation in Asia reduced 7.2%, while China is a regular market, it went down 8.9%.
PRICE
In September, price was at 78,500 – 82,000 VND/kg in Daklak and show no sign of going down. As directive 16 is loosen in key areas, many factories began to run production again, together with raising demand in market, tightening supply and farmers not yet want to sell, these created a strong impaction on the price of raw materials, in upward trend.
SUPPLY
In September, the supply source for pepper still remains low. Farmers are comfortable, not selling, holding 10,000 tons, 6% of crop, meanwhile key areas like DakLak, Dong Nai, Binh Duong still got affected by Directive 16 of the Government.
Activities are suspended and traffic is still temporarily frozen. However, as situation is getting more positive, key provinces in the south are planning to allow transport more easily, and let the factories back to work under the new normal conditions.
It is said that new cropsize can be lower in comparision to crop 2021, thus urging importers to make contract beforehand.
WEATHER
After a period of dry weather, rain has come back in September across pepper growing regions. Large amount of rain has been recorded across the Central Highlands provinces over the last month, with most of the key regions recording nearly 300 mm of total rainfall. This may have negative impaction upon the next crop production as many insects and diseases can take advantage of the humid air and soil to grow, thus weaken the strength of pepper, especially its root.
*DISCLAMER:
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]
