Agri Business

Cashew continues to rule steady

G.K. Nair Kochi | Updated on February 21, 2011 Published on February 21, 2011

A street vendor selling cashew nuts in Kerala. (file photo) K K Mustafah   -  Business Line

Steady to firm undertone continued last week in the cashew market. India sold W240 at around $4.30 and W320 at around $3.75 f.o.b. while some processors were able to sell few cents higher.

Splits and pieces moved up a marginally. It is reported that some Vietnam processors sold a few cents lower than India. There is reasonable buying interest around these levels but offers are limited. The domestic market continues to be quiet, according to trade sources.

Raw cashew nut (RCN) market was quiet. However, some business was done for Tanzania at around $1,750 and Mozambique at around $1,475 C&F. West African RCN quotes were Benin at around $1,600, Ivory Coast (IVC)/Ghana at around $1450, Nigeria at around $1,250 C&F but these can only be considered indicative until physical movements start, Mr Pankaj N. Sampat, a Mumbai based dealer, told Business Line.

India and Vietnam crops are reported to be late and small arrivals have started and prices are very high.

“The situation in IVC needs to be watched closely - if not settled soon, it could lead to big delay in movement of 20 per cent of the world RCN production + more competition for lower RCN availability during March-May,” he said. The delay would also mean quality deterioration and consequent reduced kernel availability even if the crop is normal in quantity. Another impact of this delay would be that the 2011 crop will be spread over a longer period reducing the pressure on available finances.

Uncertainty

Everybody in the Cashew supply chain is confused (and uncomfortable) with the current situation as the uncertainties are much larger than

normal, he said. Shellers and buyers (traders and roasters) seem to be content to sell/buy limited quantities as and when needed – neither

want to take any big positions.

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Published on February 21, 2011
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