There was reasonable activity in the Cashew market during Week 48 but undertone was mixed. Some processors sold at significantly lower prices whereas others were able to sell close to higher levels seen in the previous two weeks.
Indian domestic market continued to be firm although activity was limited. Indian festival offtake (Sep to mid Nov) has been good and inventories in consuming centres are not too large. It would be reasonable to expect good activity before the next domestic season starts in mid Jan.
Price range at the end of the week was W240 from 3.65 to 3.90, W320 from 3.25 to 3.45, W450 from 3.05 to 3.15, SW from 2.60 to 3.00, SSW from 2.40 to 2.50, Splits from 2.00 to 2.20, Pieces from 1.40 to 1.70 FOB.
Such a wide range of prices for the same grade confuses and distorts the market. Slow movement of the lower grades is another concern as it increases the grade differentials and has significant adverse impact on overall realisation and kernel parity of RCN prices.
RCN market also saw reasonable activity – spot parcels in India & Vietnam as well new shipments from West Africa at prices ranging from US$ 900 to US$ 1100. Sales in Tanzania auctions around US$ 1300 are picking up but so far most of the buying has been by traders – very small quantities hace been picked up by shellers. Brazil continues purchases in Africa even while own crop is being harvested – there are reports of a big shortage there.
In the the last 5-6 weeks, there has been steady buying of small volumes by all markets which has kept the market moving within a range – bunched up buying would have resulted in an unnatural jump. This has also helped movement of 2012 crop RCN stock.
During December we expect steady buying to continue from USA & Europe as most players would like to cover reasonable portion of their early 2013 positions before the year ends.
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Pankaj N. Sampat
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