Cashews: crop losses drive market

May 29, 2024 at 11:39 AM , Der AUDITOR
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HANOI. Drought has reduced production in quite a few leading cashew producing countries. While RCN prices are on the rise, the situation is quite different in the export market.

China doubles imports from Vietnam

As the Vietnam Cashew Association (Vinacas) reports exports are doing rather well this year so far. Monthly exports stood at 65,000 mt worth USD 350 million in April and total exports climbed to 216,000 mt worth USD 1.2 billion in the first four months of the year. This presents an upsurge of 32% in terms of volume and a 21% rise on terms of value on the same period in 2023. Strong growth has been observed in shipments to China, the Netherlands and the USA, which is the most important market for Vietnam. Exports to the US reached 52,000 mt in January to April, which is 35% up on last year. Shipments to China more than doubled to 31,500 mt. Exports to the Netherlands stand at 13,700 mt. The average export price for cashew kernels declined by 8% to USD 5,370/mt.

Crop losses due to drought

Producers are confronted with RCN shortages as the weather phenomen El Niño provided dry and extremely dry conditions in many producing countries in 2023. Vietnam has reported crop losses of 20-25% and in Côte d'Ivoire, the world's leading RCN producing country, crop losses amount to 20%. Côte d'Ivoire is also investing in local processing facilities, which is impacting RCN exports. Benin, which is another important supplying country, even issued an export ban for RCN that became effective on 01 April. Not only have import supplies become more limited for Vietnam but RCN prices are also on the rise. Some suppliers are having difficulties meeting existing contracts.

Downturn in export prices

As many buyers in the US and EU are well covered at present there is no hurry to import at higher rates. Expectation however is that exports will gain pace in the seond quarter as demand in other regions is on the rise. Especially in Asia, where the Red Sea Crisis is not impacting shipments, whereas buyers in the US and EU are contronted with delays and higher costs. Exporters in Vietnam are confident that they will meet the target of USD 3.8 billion in 2024. 

Export prices have also declined in India. W240 cashew kernels are trading at USD 8,535/mt FOB India.

Cashews, India













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