CaliToday (02/11/2025): Prices for key Vietnamese agricultural commodities are displaying strong bullish momentum, with domestic pepper prices continuing a significant rally and Robusta coffee logging its third consecutive week of modest gains.
The market movements, reported on Sunday, underscore Vietnam's critical role in the global supply chain for both commodities, as buyers contend with supply constraints and strong underlying demand.
Pepper Prices Hit New Highs
The domestic price for Vietnamese black pepper continued its upward trend, with farmers and agents in key growing regions (such as the Central Highlands and the Southeast) quoting prices between VND 145,500 and VND 148,000 per kilogram ($5.80 - $5.90 USD/kg).
This represents a continuation of a strong price recovery that has been building throughout 2025. Market analysts attribute the sharp rise to several key factors:
Tightening Supply: Domestic inventories from the previous harvest are reportedly dwindling. Vietnam, the world's largest pepper producer and exporter, is facing a "supply-demand imbalance" that is tipping the market in favor of sellers.
Global Market Consolidation: The International Pepper Community (IPC) recently noted that the global market is stabilizing and consolidating after previous volatility. This has given Vietnamese exporters more confidence to hold out for higher prices rather than selling quickly.
Farmer Hopes: The rising prices are welcome news for farmers, many of whom have faced difficult years of low prices. There is an expectation that prices will continue to climb, leading some to hold back their remaining stock, further tightening the spot market.
Coffee Market Gains Momentum
In parallel, Vietnam's coffee market dominated by the Robusta bean, for which Vietnam is the world's #1 producer is also showing positive signs.
Market prices have recorded a slight but steady increase for the third consecutive week. While the gains are more moderate than those seen in the pepper market, their timing is significant. The market is currently in the early stages of its new 2025-2026 harvest season, which typically begins in October and peaks in the coming months.
The price strength, even as new beans are set to enter the supply chain, suggests robust demand from international roasters who are looking to secure their supply chains. There are also persistent market concerns over the potential impact of recent weather patterns on the final yield and quality of the new crop.
These dual price increases are set to provide a significant boost to Vietnam's agricultural export revenue in the final quarter of 2025.