The cashew kernel market last week witnessed a little buoyancy following some business activity with the US and the European Union.

Notwithstanding, the “cashew market is continuing to pass through the longest quiet and steady period in many years,” Mr Pankaj N. Sampat, a Mumbai-based dealer told Business Line .

Despite this, there has not been much change in prices in the last three months, he said adding “ the current prices are W240 $3.55-3.75 ; W320 $3.20-3.,35; W450 and SW320 $3.00-3.15 ; SW360 $2.70- 2.90; Splits $2.05-2.25 ; Butts $2.10-2.30; Pieces $1.60-1.75/lb (f.o.b.).

There has been a slight pick up in activity in the Indian market as well in the last few days, he said.Demand outlook continues to be hazy – especially in the US and the EU. Kernel prices can come down significantly only if raw cashew nut (RCN) prices come down

There have been some sales from stocks of West African RCN in Vietnam and India. Good quality Indonesia RCN continues to trade at a significant premium. There is no change in the news from Brazil where expectations are for a crop below 2.5 lakh tonnes for third year in a row.

Conversion into kernels in the last quarter of 2012 is likely to be less than normal. If kernel activity picks up, processing in first quarter of 2013 may be higher than normal.Given the prevailing overall scenario, it would be reasonable to expect a steady market in the last quarter moving in the current range with limited downside and some possibility of a price increase if activity picks up in next 4-6 weeks, trade sources said.

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