Domestic cashew market remains sluggish

KOCHI, FEB. 21:

The overseas cashew market has been buoyant for the past couple of weeks with reasonable activities, but the domestic market has been sluggish.

Price levels were for W240 from $3.75 to $3.90; W320 from $3.30 to $3.45; W450 from $3.15 to $3.25; splits from $2.20 to $2.30; and pieces from $2 to $2.15 a kg (f.o.b). According to trade sources, there was limited activity in the domestic market.

RANGE-BOUND

The market is likely to move in the current range in the first half with a possibility of some softness in April-May, if crops are normal and the kernel demand is slow.

“Unless the RCN prices come down substantially, the downside in kernel prices is not much. We can also expect a gradual upward movement in kernel prices in the second half of the year,” Mr Pankaj Sampath, a Mumbai-based dealer, told Business Line.

As some processors need to have sales on books before starting new crop purchases, the price range widened but there was little business at the lower end, he said.

Pre-season uncertainty about raw cashew nut (RCN) is higher than normal.

“The northern hemisphere crops are beginning with two supply side factors pulling in opposite directions – stocks in East Africa coupled with early interest from Brazil in West Africa.

Despite lack of interest from India and Vietnam at current levels, Tanzania does not seem to be willing to lower price to move the stocks,” Mr Pankaj said.

Except for reports of some delay in Vietnam, there are no adverse reports about the other upcoming crops.

Until physical movements start from West Africa in late March/early April, it is impossible to have an idea of actual price trend, he said.

Source: http://www.thehindubusinessline.com/industry-and-economy/agri-biz/article2916977.ece