Cashew prices were steady at lower levels last week. Limited volume was sold by small and medium processors from Vietnam and India in the range of $4.30 to $4.45 for W240, $4.00-$4.20 for W320, $3.45 to $3.60 for splits and $3.30-$3.45 for pieces for October-December shipments. Large processors were quoting 10-15 cents higher but no trades were reported at the higher levels, trade sources in Mumbai said.
The domestic market was quiet with slower-than-expected retail off-take.
DOMESTIC MARKET QUIET
“Even if it picks up in the next two weeks, there will be no time for wholesalers to replenish stocks before Diwali. Now, the next round of buying for the marriage season can be expected only by mid November,” a Mumbai-based dealer, Mr Pankaj Sampat, told
Due to the quiet kernel market, there was not much activity in Raw Cashew Nut (RCN) market also. Offers for Indonesia were in the range of $1,800 a tonne (c&f), but very limited buying was taking place. There is still some unsold volume in West Africa, apart from the stocks with RCN traders in India and Vietnam. Prices in Brazil have come down by about 10 per cent but arrivals are slow. If Tanzania auctions start in mid Oct, buying interest is likely to be limited. Processors would like to see some activity in kernels for 2012 shipments before making new RCN purchases, he said.
Kernel traders are reluctant to buy any large volumes as there is very little fresh business with roasters. Similarly, roasters seem to have withdrawn as there is limited contracting with retailers. Both appear to be content buying small quantities when needed until a clear indication of demand trend emerges.
“If Aug/Sept quietness continues in Oct/Nov, we could probably see kernel prices drifting to the lower end of the 12-month range, i.e. to around $4.00 per lb for W320. But, if there is reasonable activity in the next 6-8 weeks we could see the price moving up again to the $4.50 range because processors would be reluctant to take large positions for the first trimester of 2012 at lower levels because there is very little RCN available for India and Vietnam to buy until the Northern crops start in March/April”, Mr Sampat said.