Nuts

Cashews: plus in exports due to cover purchases

May 18, 2020 2:21 PM, Der AUDITOR
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HANOI/NEW DELHI. Despite declining prices, the Indian cashew market shows little trading activity, while demand from China for Vietnamese goods is increasing again.

43,000 metric tonnes exported in April

According to the Vietnamese Ministry of Agriculture and Rural Development, the country exported around 137,000 metric tonnes of cashew nuts worth USD 948 million in the first four months of 2020, which is an increase of 19.4% and 4.2% respectively over last year. The main buyers during this period were the USA with a market share of 36.8%, followed by the Netherlands (11.96%) and China (6.9%). With 43,000 metric tonnes, more than a quarter was exported in April 2020, worth USD 281,000. Farmgate imports reached 105,000 metric tonnes worth USD 132 million.

Rising prices for RCN

Higher costs for RCN on the domestic market also caused export prices to rise compared to last month. In the European spot market, Vietnamese cashews, W320, are therefore trading at a level of EUR 6.60 per kg FCA Spain - around EUR 0.40 per kg more expensive than a month ago. Concerns about long-term disruptions in the supply chain for RCN due to the spread of the pandemic in African growing countries are generating good demand from EU countries. Enquiries from China are also increasing again since the situation in the country is slowly returning to normal.

Lack of demand from India

Meanwhile, the Indian cashew market is reacting to the lack of demand by cutting prices. Cashew kernels, W320 are currently offered for EUR 8.17 per kg FOB India. Market players do not expect significant price changes in the near future.

Cashew prices, India

Type

USD/kg

W240

9.48

W320

8.17

W450

7.25

LWP

7.11

SWP

6.32

FOB India

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