Nuts

Cashews: no supply squeezes in 2022

January 25, 2022 8:00 AM, Der AUDITOR
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HANOI. High carry-in supplies coupled with good crops in Vietnam, India and Côte d'Ivoire should ensure a steady supply this year. Exports are, however, anything but simply.

Record volumes in Vietnam

As Cornhouse reports Vietnam imported around 3.5 million mt of raw cashew nuts (RCN) in 2021. This not only exceeds the volumes imported in 2020 by more than 81% but also sets a new record. The exceptionally high volumes imported from Cambodia remain suspicious. At 609,260 mt, Vietnam's exports range nominally higher than recent official estimates. Vietnam certainly still holds large supplies.

Buyers are holding back in the USA and in Europe, which is normal for this time of the year. Roasters appear to have enough supplies at their disposal for the next six months and sufficient supplies are available at the ports. Reports state that many shippers in Vietnam will close for Chinese New Year, which is celebrated on 1 February. Exports should therefore range below the six-month moving average over the next few weeks.

Encouraging production prospects

The shipping crisis will certainly continue to slow down exports. High Covid-19 infection rates mean that there is a labour shortage and restrictions are in place at the ports. A high number of ships are still waiting to enter their ports of destination and to be unloaded. Extortionate cargo rates prevail and contingency plans are being drafted. Prospects are, however, rather encouraging as reports state that the crops are developing well in Vietnam, India and Côte d'Ivoire and because carry-in supplies are relatively high this season. Analysts, therefore, agree that a supply squeeze is out of the question this year. Although raw cashew nut prices are high, cashew kernel prices range surprisingly low in Europe.

 

Cashew kernels, Vietnam

Type

EUR/kg

USD/kg

WW320

6.38

7.25

WW240

6.80

7.75

Large White Pieces

4.38

4.97

Small Pieces

2.97

3.38

FCA Spain

 

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