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Cashews: difficult export situation

May 5, 2020 9:02 AM, Der AUDITOR
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HANOI/NEW DELHI. Although the first quarter was successful as far as exports are concerned, Vietnamese market players expect difficulties in the following quarters due to the coronavirus. The import of RCN is also experiencing certain problems these days.

Successful Q1 

According to the Vietnam Cashew Association (Vinacas), cashew exports continued to increase in the first quarter of 2020 compared to 2019. In total, almost 95,000 metric tonnes of cashew kernels worth USD 667 million were exported, which is an increase in volume of almost 19.5% and an increase in export value of 4.4%. In the following quarters, however, the export figures are likely to be significantly lower than last year due to the spread of the Covid-19 virus.

Rising prices

Like most other markets, the cashew market is currently struggling with the effects of the corona pandemic. Many factories in Vietnam have had to close down temporarily and some producers in India are also forced to take a break. This is causing prices to rise. Vietnamese cashews, LP are traded for EUR 2.55 per kg FCA Spain on the European spot market.

However, the situation seems to slowly improve. After a long pause, China has now resumed imports and demand from Europe has also risen again, according to market players. In the USA, another important export destination, demand is still rather restrained. Overall, the trade expects the market to take a long until things are back to normal.

Cashew prices, India

Type

USD/kg

W240

9.60

W320

7.90

W450

7.44

LWP

7.33

SWP

7.00

FOB India

Import problems for African RCN

There is a sufficient amount of RCN available this season, as the crop was successful in both Vietnam and Cambodia. However, the most important farmgate market for the Vietnamese cashew industry is Africa. Here, too, the crop was successful, but the export situation is difficult due to the Covid-19 pandemic. Nigeria, for example, has high quarantine requirements, which is slowing down exports noticeably. Côte d'Ivoire has temporarily closed the port of Abidjan, which is an important hub for the export of RCN. Another problem is the lack of empty containers, without which the goods cannot be shipped.

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