Update on the pepper market

The pepper market continues to exhibit strong bullish tendencies. Our clients frequently inquire about the ongoing developments.

The latest update from Vietnam confirms a reduction in harvest, approximately 18% below last year's levels. Many farmers have shifted to coffee cultivation we even see avocado planted nowadays, and pepper plant maintenance has declined. This has significantly contributed to the price surge.
 
Farmers' financial stability is now robust, allowing them to withhold pepper stocks and tighten supply. This strategic withholding has driven prices up since February. \
 
We've experienced daytime rallies with prices jumping by $100/MT. The market remains highly volatile, with prices fluctuating daily and even within the day. Our team is fully equipped to navigate these fluctuations and keep our clients informed.
 
Looking ahead, Brazil is unlikely to bring calmness to the market due to strong concerns about expected output of their upcoming crop. Additionally, Indonesia's new crop of Muntok (white pepper) and Lampong (black pepper) in July and August will not significantly impact the market since it is less each season.
 
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Stay tuned for more updates as we continue to track these developments closely.