Sunday, January 20, 2008

Weekly Cashews Update

Jan 19, 2008

Cashew market has been very quiet in the last two weeks but sellers price ideas have moved up a few cents due to higher RCN prices & weaker USD.. Last traded levels were W240 around 2.85, W320 around 2.55 FOB (about ten days ago) and now sellers are asking minimum 10 cents higher (large packers are not offering). Except for stray sales to some markets, there has not been any business at higher levels to main line markets but there is reasonable interest at last traded levels

RCN prices in all origins have moved up (as there is not much available now). Even in India, small processors who cater to domestic market are buying spot parcels of imported RCN at high prices. This will continue for few weeks until newcrop arrivals start. So far conditions in all origins have been good - in coming weeks we can expect various news & rumours which will affect market sentiment & prices but cleatr picture will not be available for quite some time

In importing countries, inventories are low and if demand for deliveries in first quarter is high, prompt shipment demand will continue and this will keep the market firm. Otherwise, there is a possibility that prices may ease in Feb/Mar when RCN arrivals start in Vietnam and India

Overall, downside is limited and volatility may be high in the next month or two. Activity in this period will have an important impact on prices for rest of the year

Pankaj N. Sampat
Mumbai India

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