Monday, March 03, 2008

Weekly cashews update

Mar 1, 2008

Cashew prices came down a few cents – W240 around 3.05, W320 around 2.75, W450 around 2.55 FOB but there was very little activity.

Most processors do not seem to be keen to make any big sales till they have a clear picture of RCN pricing in the three main producing areas.. But some processors have sold limited quantities at slightly lower levels

Kernel buyers also seem to do not want to make any big purchases till they see how demand develops in coming weeks given that current prices are quite high compared to last year’s levels. Meantime they are buying some quantities “when needed” or when they have some new enquiries from endusers.. If new demand is limited, buying trend will continue to be restrained

Apart from some “early” news of some concerns with Vietnam crop, there is no adverse news from any origin. Prices have softened a bit in India & Vietnam. Initial offers from West Africa were high but did not induce any significant buying interest. During March, RCN activity will pick up and depending on prices paid, we will see kernel price range evolving with offers from processors as they start buying RCN.

In last few months, all commodity prices have gone up substantially – it is to be seen whether these higher prices will be sustained in coming months and more specifically what impact these higher prices will have on demand for different categories of products

In cashews, we can expect higher volatility in Mar/Apr depending on news from origins and need of processors to make sales. After that, a medium term range for second half 2008 will be established – it seems it will be higher than last years range but it is to be seen how it will compare with the current levels

Would appreciate your comments and views & any news / info

Pankaj N. Sampat
Mumbai India

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