Weekly Cashews Update

Aug 2, 2008

Cashew market undertone has been steady this week – although there was very little activity, prices are holding up and there is hardly any selling interest at lower levels. Prices continued to be in a wide range i.e. 3.40-3.55 for W240, 3,30-3.45 for W320, 3.10-3.25 FOB for W450. Splits and Pieces moved up in Indian market but were reportedly soft in international market

Traditionally, July is quiet but it has been unusually quiet this year… this makes it all the more difficult to judge market trend. If buying interest for nearbys is limited, prices may ease a bit as small & medium packers will have product to sell for Aug-Oct shipment. If buyers need to cover large quantities for this period, then prices will remain around current levels and may even move up a bit

During Aug/Sep, EU buyers do major portion of their buying for the next year and USA buyers do their top-up buying for rest of the current year. This year, there is a lot of uncertainty about both and this will make it difficult for all stakeholders to take decisions on pricing & extent of position taking.. The historically high prices and higher level of uncertainty are a challenge (and for some, an opportunity)

General feeling is that prices will remain around current levels or little higher in the coming weeks – it will be interesting to see what impact this has on the volume of business that people are able (willing) to do for 2009 shipments

What is your opinion about market situation & trend ? Would appreciate your views & forecast on consumption / demand trends and any other info & news

Regards
Pankaj N. Sampat