US, EU buying boosts cashew market

KOCHI, MARCH 26: 

The cashew market witnessed some buoyancy last week with prices moving up a few cents for two grades viz., W240 and W320 while not much change was seen in the other grades.

The undertone of the market was firm with buying interest in these two grades but being reasonable.

But the volume traded was less as there were not many sellers at the prices which buyers were offering to pay, market sources said.

The domestic market continued to be quiet but there were some indications that consuming centres are running out of inventory and may need to replenish soon, they said.

The range of prices this week was W240: $3.90-4.00; W320: $3.35-3.50; W450: $3.05-3.15; SW320: $3.00-3.10; SW360: $2.80-2.90; Splits: $2.15-2.25; Pieces $1.40- 1.50 a lb (fob).

Last three weeks, there has been a reasonable amount of buying by the US and the EU traders and some roasters for shipments up to June-July, Pankaj N. Sampat, a Mumbai-based dealer toldBusiness Line.

He said that most of the buyers have been reluctant to pay the few cents premium that large shellers are looking for and, therefore, most of the business has been with shellers who are selling in the lower end/middle of the current range.

In all origins, raw cashew nut prices moved up.

Shellers in all origins are finding it difficult to handle this new development in grades which constitute close to 40 per cent of the yield.

Long term solution to this issue would include better quality of raw cashew, processing and marketing.

The decline in raw cashew prices may not happen “if shellers are forced to buy at high prices because they need to keep factories running or because of the normal inclination to cover early arrivals (good quality).

Or if the kernel demand (and prices) pick up within the next 4-6 weeks making it possible for shellers to pay the high prices,” Pankaj said.

The trade continue to believe that market will remain steady to firm during 2013 with some possibility of a limited dip in April-May if raw cashew prices come down and a strong possibility of higher levels in the second half of the year, he said.

Source: Business Line