Europe, US buying keeps cashew market steady

KOCHI, NOV 6:

Cashew market was steady with a firm undertone last week and witnessed reasonable activity with Europe and the US and some sales were reported to off markets as well.

There was an usual burst of pre-Diwali activity in the domestic market. However, “things will probably be quiet for a couple of weeks before buying for the wedding season starts after Diwali i.e. mid-Nov”, Mr Pankaj N. Sampat, a Mumbai-based dealer told Business Line.

Prices were more or less the same with slight improvement in some grades. The price range during the week for W240: $3.75-3.85; W320 $3.25-3.35; W450 $3.10-3.15; SW320 $3.30; SW360 $2.80-2.90; splits $2.10-2.20; butts $2.15-2.25 and pieces $1.60-1.70 for one lb (f.o.b.). Raw cashew nut (RCN) prices in Indonesia came down a bit to about $1,250-1,275 a tonne.Shellers are not very keen to sell large volumes for forwards unless they get some premium over current prices.

The feeling is that without a significant fall in RCN prices there is limited downside to the market but there is some possibility of a slow increase if demand picks up end of 2012 or early 2013.

Most shellers have high priced inventory and are not likely to be in hurry to sell unless there is a big fall in demand or significant decline in replacement RCN prices.

Source: Business Line