Little activity in Cashew market

By Pankaj N. Sampat
There was very little activity in cashew market this week and no change in prices. Stray trades reported W240 around 2.65, W320 around 2.25, W450 around 2.10, Splits around 1.80 FOB. Prices from Vietnam and Brazil were almost the same

Indonesia RCN being offered at high levels but no buying interest from main processors. Tanzania has not announced price, tax, policy – final meetings scheduled next week. Stakeholders hope they will fix realistic parameters so that movement is smooth and in time

Kernel buyers seem to be content to pick up quantities when reasonable offers are made… or paying up few cents for limited quantities they need to fill specific needs. There does not appear to be any interest to pay premium to build up long position

Similarly large processors are content to sell some quantities at each spurt and then wait for next selling opportunity – not keen to take any large positions unless they get a premium. Medium & small processors continue to sell when they need to (or are able to)

Product movement is steady and there is no excess inventory. This is good in the sense that entire chain is comfortable but any disruption in supply or jump in demand could queer the pitch

Overall we would expect market to move in 2.15-2.30 range unless something dramatic happens. Given the narrow margins, pricing RCN for first quarter 2008 processing and kernels for first half 2008 shipments is going to be a challenge.