Nut Talk

Our weekly cashews update
Nov 12, 2007
Cashew market continued its upward movement last week - business was done W240 around 2.85, W320 around 2.45, W450 around 2.30 FOB. There were rumours of some trades for W320 few cents higher as well. There was a fair amount of buying interest from USA at these levels and other markets are also picking up some quantities. Offers from India and Vietnam are limited - processors are concerned how things will move in coming weeks after the big jump on small volume. Processors in Brazil are still not offering any significant quantities... and this situation will continue until RCN arrivals pick upTanzania RCN has still not started moving. Until the stalemate is resolved, Indian processors will be reluctant to make any large sales for 2008 shipments as they do not know what price they will have to pay for seed for first quarter processing. If buying interest does not subside in coming weeks, we could be looking at firmer market throughout 2008 but on the other hand, if buyers keep away from the market for few weeks till East Africa & Brazil crops start moving we will see the market stabilising around current levels.. After that, next direction - up or down - will depend on how kernel buyers operate in first quarter (just before Vietnam, India, West Africa crops start)

Regards,
Pankaj N. Sampat
Mumbai India