Nut Talk

September 8, 2007
Cashew market was quiet this week. W320 prices softened for nearby positions as some processors dropped selling ideas due to lack of buying interest. Large processors ideas continued to be around 2.70 for W240, 2.30 for W320, and 2.15 for W450. Brazil and Vietnam prices are almost the same as India and not much activity reported from these origins either
Indonesia RCN prices MOVED UP but activity is very limited. Unless RCN prices ease or kernel prices move up, we do not expect any rush from India to buy Indonesia or Vietnam RCN as processors seem to have adequate stocks in warehouses and pipeline. Since no big change is expected in kernel demand or prices, processors will be cautious in buying RCN unless there is a reasonable parity
Brazil is expecting a good crop but processors do not seem to be in hurry to make sales – probably they expect good demand from USA for next few months
It seems that kernel market is comfortable in current range (which is higher than the range we have seen since last quarter 2005 to mid 2007) and will continue to move within this range with periodic jumps and dips for specific grades and positions.. Differentials for lower grades have narrowed down to the old levels and industry seems to be adjusting to this.. Differentials for large sizes continue to be big and it does not seem that this will change in near future
Regards,
Pankaj N. Sampat
Mumbai India