Nuts

Cashews: inexplicable rise in exports

May 4, 2021 at 9:18 AM, Der AUDITOR
Play report as audio

HANOI. Excessive demand for cashew kernels has prompted suppliers in Vietnam to step up raw cashew nut imports. Shipments to Vietnam, in fact, rose more than fivefold in March over last year. Market players are, however, mystified by shipments from Cambodia. As the Vietnam Cashew Association (Vinacas) reports Cambodia shipped a seemingly incredible volume of 367,000 mt of raw cashew nuts to Vietnam in March. Problem, however, is that production only ranged at 300,00 mt. This has sparked speculations.

Imports nearly 450% up

Traders report that demand is still excessively high. So high in fact that imports have been stepped up sharply. Vinacas has sharply revised imports for March upwards from initially 300,000 mt to 473,000, which is a 446% rise over March 2020. Cambodia is the main supplier by far, as the country accounts for more than 367,000 mt of the volumes shipped to Vietnam.

The INC, however, rather estimates last year’s production at 250,000 mt and other market players, such as Cornhouse, reckon that production reached 300,000 mt at the very most. As these volumes cannot possibly account for the sharp rise in Cambodia’s exports it is now reckoned that production may have exceeded estimates by far. Prospects are, in addition, not really encouraging in Vietnam. Issue is that heavy rains are making it difficult to dry nuts meaning that more imports will be required.

High cargo rates remain problem

Vietnam shipped more than 47,443 mt overseas in March, which is roughly on par with last year. As much as 11,500 mt were destined to the US and 5,000 mt to China and the remaining 31,000 mt to the EU and other countries. Ridiculously high cargo rates are, however, still a problem. Shipments to the US are next to impossible. Exporters, nevertheless, hope that business will revive in the second half of the year.

Nominal rise in prices

Cashew kernels are trading around EUR 0.05/ kg higher in Europe. WW320 cashew kernels from Vietnam, for instance, range at EUR 6.40/kg FCA Spain. In India, the prices for cashew kernels, W320, have by contrast declined from EUR 7.44/kg at the start of April to EUR 7.21/kg FOB India at the end of the month.

Cashew kernels, Vietnam

Type

EUR/kg

WW320

6.40

Large pieces

2.85

Small pieces

2.00

FCA Spain

 

View more
price charts, cashew kernels, India
more price charts

 

View related articles

Go to the News Overview
Nuts
Feb 2, 2023
ORDU. Suppliers in Turkey are utterly shocked and surprised by the TMO’s decision to sell hazelnuts. Initial assumption was that the state-run organisation would try to hold on to its stocks to prevent prices from tumbling before the general election in June.
Nuts
Feb 1, 2023
HANOI. Farmers presently have little incentive to harvest cashews in Vietnam. Many have, in fact, stopped harvesting as local media report. Trouble is that raw material prices are simply too low. There is no chance of improvement as prospects are bleak for exports.
Nuts
Jan 31, 2023
MANILA. As the experts of T.M. Duché report, prices for coconut oil were able to crack the USD 4,000/mt mark at the beginning of the year. How the situation develops further in the course of the year depends largely on the other edible oil markets.
Nuts
Jan 30, 2023
NEW DELHI. The shortage of sesame oil is making many buyers in India and overseas switch to peanut oil as a popular alternative. The higher demand is also causing prices to rise. There is good news regarding import duties.