With competing nuts ruling higher, raw cashew price may not fall

KOCHI, NOVEMBER 18: 

The cashew market, which showed some buoyancy from mid-August till mid-October, is witnessing subdued activity. During the last three weeks, prices have slipped by a few cents from large processors and more from the small and medium processors.

According to trade sources, cashew continues to be the most reasonably priced nut moving in a relatively narrow range compared with other nuts.

Therefore “it would be reasonable to expect prices to remain in this range and maybe even move up a bit – depending on buyer behaviour,” Pankaj Sampat, a Mumbai-based dealer, told BusinessLine.Highest levels traded were W240 at $4.05-4.15 and W320 $3.60-3.70 per lb (fob). Offers/trades during the last fortnight were in the range of W240 $3.75-3.95, W320 $3.40-3.55, W450 $3.30-3.45, SW320 $3.35-3.45, butts $3.10-3.25, splits $2.95-3.05 and pieces $2.85-2.95 per lb (fob).

However, for the time being, many buyers seem to be waiting to see how market moves in coming weeks. But, some are still buying part of their requirements from reliable processors (even at higher levels).

RCN prices up

Raw Cashew Nut (RCN) market moved up between August and mid-October, with prices for West Africa RCN moving up from $1,150-1,250 to $1,350-1,550 a tonne range. Tanzania RCN traded at around $1,600 c&f. During the last 2-3 weeks, this has come down to $1,425-50.

“If processors are not able to sell kernels at higher prices, they may be slow in buying RCN which in turn might lead to some reduction in prices, but reduction will not be much since availability is limited due to a fall in Southern crop output, estimated to be less than 25 per cent of world production,” Pankaj said.

“Although we cannot be sure how market will move, especially in an uncertain situation like we face at present, our feeling is that cashew kernel market will remain in the range of $3.40-3.70 for next 3-4 months and maybe more,” he said.

- The Hindu