Sunday, October 21, 2007

Cashews market updateOct 20, 2007
Cashew market seems to have settled down in a comfortable range – W240 around 2.65, W320 around 2.25, W450 around 2.10 FOB. Reasonable volumes are being traded from India & Vietnam.
Rawcashew market is quiet – offers from Indonesia are very high and Tanzania stalemate continues. Until they come to realistic levels, movements are unlikely to start.
Inventories of main grades are low in USA & Europe and this will keep market steady. Volume traded for next year has not been much – processors are not keen to sell unless they get a premium and buyers feel that there is nothing to trigger a change in the current price range. Supply growth will take care of normal consumption growth
Weaker USD means lower realisations for origins and attractive prices for non-US markets. This could have some impact on market in coming months
Overall feeling is that market will move within few cents of current range with a possibility of some increase in case of any supply disruption or big jump in demand
Would appreciate your comments on market situation and your forecast of demand & price trend and any other news or info
Pankaj N. Sampat
Mumbai India

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