Monday, August 20, 2007

Cashews Maket Update
August 18, 2007
FOB India prices this week :

W240 US$ 2.70

W320 US$ 2.20 – 2.25

W450 US$ 2.10 – 2.12

SW320 US$ 2.05 – 2.10

SW360 US$ 1.95 – 2.00

SSW US$ 1.90 – 1.95

FS US$ 1.75 – 1.80

FB US$ 1.70

LWP US$ 1.65 (LP 1.45 )

SS/SB US$ 1.55

SP US$ 1.30 – 1.35

Market moved up a few cents this week. Business was done for W240 around 2.70, W320 around 2.20-2.25, W450 around 2.10 with large packers able to sell few cents higher. Fair amount of business has been done in last few weeks from India & Vietnam at all levels

Very little RCN is available in West Africa now but there will continue to be re-sale activity in coming weeks. Next month, India & Vietnam will start looking at Indonesia & East Africa and Brazil will start buying their crop.

RCN prices in Sep/Oct and Brazil kernel offers will have great impact on kernel prices for FH 2008 shipments. Nothing new is expected on supply side – so, the feeling is that in coming weeks, price movement will also depend on demand pull & roasters / traders strategies for FH 2008 purchases.

If shipments in third quarter are good, inventory drawdown will be reduced and upward pressure on prices for nearby shipments will ease.. otherwise spot & prompt demand will keep market firm

At current levels there seems to be reasonable buying interest. It is to be seen whether buyers are willing to pay higher prices or wait for selling interest to emerge to cover their forward requirements – a difficult call to make at any time but more so now, when prices have moved up significantly in a short period after having traded in a narrow range for a long time

Pankaj N. Sampat
Mumbai India

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