The cashew market last week was buoyant with mixed undertone as some processors sold at significantly lower prices while others were able to sell close to higher levels seen in the previous two weeks.

The domestic market continued to be firm although activity was limited. Indian festival offtake during Sep to mid-Nov has been good and inventories in consuming centres are not too large. It would be reasonable to expect good activity before the next domestic season that starts in mid-Jan, Pankaj N. Sampat, a Mumbai-based dealer told Business Line..

Price range at the end of the week was W240: $3.65-3.90, W320: $3.25-3.45, W450: $3.05-3.15, SW: $2.60-3, SSW: $2.40-2.50, splits: $2-2.20 and pieces: $1.40-1.70 FOB.

Such a wide range of prices for the same grade confuses and distorts the market. Slow movement of the lower grades is another concern as it increases the grade differentials and has impact on overall realisation and kernel parity of Raw Cashew Nut (RCN) prices.

In the the last 5-6 weeks, “there has been steady buying of small volumes by all markets which has kept the market moving within a range – bunched up buying would have resulted in an unnatural jump”, he said. This has also helped movement of 2012 crop RCN stock.

During December, “we expect steady buying to continue from the US and Europe as most players would like to cover reasonable portion of their early 2013 positions before the year ends”, trade sources claimed.

RCN market also saw reasonable activity last week with spot parcels in India and Vietnam as well new shipments from West Africa at prices ranging from $900 to $1,100. Sales in Tanzania auctions around $1,300 are picking up but so far most of the buying has been by traders. Very small quantities have been picked up by shellers, they said. Brazil continued purchases in Africa even while its own crop is being harvested. “There are also reports of a big shortage there”, they added.

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