The Cashew market turned buoyant last week following reasonable activity with the US and the EU buyers up to Feb/March shipments including some stray sales for later positions as well.

Trades were mainly for white wholes. Other grades continued to remain neglected.

Most of the activities were from India and “we did not hear of any significant trades or offers from Vietnam”, Mr Pankaj N. Sampat, a Mumbai-based dealer, told Business Line .

Activity picked up in the domestic market with slight improvement in prices for good quality product.

In Vietnam, China was slightly more active than the last few weeks, he said.

Except for a slight narrowing of gap between high and low offers for wholes, there is hardly any change in the price in the last several weeks. Higher offers were not taken up.

Price range for W240 was $3.60-3.70; W320 at $3.20-3.35; W450 at $2.95-3.05; SW320 was $3.00-3.10; SW360 at $2.75-2.90; splits were $2.00-2.20, butts $2.10-2,25, pieces $1.55-1.70 a lb (f.o.b.).

Buying pattern

Most kernel buyers continued to buy smaller volumes for shorter spreads.

“In some years, prices went up during the main harvest. In some years, prices went down before the peak consumption period. We could not find any annual pattern or trend.

But, we noticed two things: 1) In all the five previous years, prices in Sept-Oct (after the main harvests) were higher or equal to prices in March-April (beginning of main harvest); and 2) At the end of all the five previous years, prices were equal to or higher than prices at the beginning of the year.” During 2012, prices spiked up for a brief period during the early part of the harvest and then started drifting down. By Sept-Oct 2012, prices are at around the same levels as in March-April 2012 viz., approx $3.25 f.o.b. for W320, before the spike in late April early May. Will the prices in Dec 2012 be same/higher than Jan 2012 viz., approx $3.50 a lb (f.o.b.) is the question now, he said.

“We feel that downside from current levels is limited, considering that current prices are lower than last two years average plus close to average of last five years plus processing costs have gone up significantly in the last three years and prices for all tree nuts are higher than medium term historical average.

“At the same time, we do not see any reason for a big jump in prices considering the uncertain economic situation and lack of confidence in retail off take; comfortable supply, maybe in the wrong place and form!!,” Pankaj pointed out.

Prices for West African raw cashew nut (RCN) came down a bit reflecting increasing deterioration in quality.

Indonesian RCN is trading at around $1,300-1,325 a tonne (c&f) with most of the sales so far being to India.

Meanwhile, there was no news yet from Tanzania regarding commencement of auction or movement.

Related Topics
comment COMMENT NOW