Cashews: moisture causes problems

July 19, 2023 at 4:55 PM , Der AUDITOR
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HANOI/NEW DELHI. Due to persistent rains during the drying phase, the moisture content of the new cashew nuts is too high. This is causing Asian importers, among others, to renegotiate.

Difficulties in drying

In Vietnam and other important cashew-growing countries, a rising quality problem is emerging for this season. The biggest difficulty has been the persistent rainfall in the main growing areas, which has prevented farmers from drying their nuts properly in the sun, according to OLAM experts. Due to the low demand, traders of unshelled cashew nuts are also forced to store the goods longer than usual. Processors have already been able to meet most of their demand, but are struggling to cope with the price declines that have since taken place, as they do not want to sell their nuts at a loss. OLAM also reports that buyers from Asia are increasingly looking to renegotiate, mainly due to delayed deliveries and the excessive moisture content of cashew nuts.

End consumers are buying less

The market for cashews is also experiencing a lull in demand that has lasted all year. Major buying countries are only stocking up on necessities and then not making any purchases for an extended period of time. OLAM indicates that prices for cashew kernels, WW320 range between USD 2.40 and 2.60/lb FOB, depending on the processor. However, due to the low prices, the processors are not very motivated to conclude long-term contracts and only few interested parties can be found for spot transactions. The behaviour of end consumers is certainly a problem, as global inflation is making them very reluctant to buy anything beyond basic foodstuffs. The holiday season in July and August is likely to exacerbate the situation. Indian cashew prices are unchanged from last week at USD 7,780/mt FOB India for W320 grade.

Cashew nuts, India











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