Cashew market: Indian market stabilizes prices

Mintec Global
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A recent study was conducted and reported by the BBC to help farmers adapt to farming and the crop changes. The study said there had already been a significant increase in the demand for Cashews from economically affluent countries, and the trend will continue.

The research states that the overall area for cashew growing can increase by 17 per cent in the next thirty years due to increased temperature. However, countries that are the primary producers of the crop can lose out on the production. One of them is India, which will significantly decrease the suitable area for cultivating cashew crops. In addition, it is expected Benin will lose half of the relevant land because of the temperature increase.

While this is the scenario for the future of cashew worldwide, the month of February cashew market is still between being stable and bearish.

International Market Scenario 

Currently, there is not much buying activity among the exporters for the nuts. As a result, there was a trend of the price drifting lower for the commodity.

Vietnam 

Compared to last year during January, the import of the RCN is down by 23 per cent, which is 107,538 mt. The raw cashew kernel import by the country is 7.5 per cent less and currently stands at 6,843 mt for January 2022.

Similarly, the export numbers have also decreased to 41,768 mt for January, 13 per cent less than January last year.

Export Details 

China last month imported 76 per cent less than January’s quantity the previous year. The amount shipped to China was 1,445 mt.

EU and others too imported 9 per cent less this January than last year during the same month. The amount sent to the EU and others by Vietnam was 28,895 mt.

India 

The domestic buying of the product kept the market stable and was also able to move the price up a bit on February 21. However, it is essential to note that the lack of export and the current international market scenario have not significantly affected Indian cashew prices.

The international roasters are interested in purchasing the products between July and December. As a result, there is not much buying activity.

Cashew shippers are looking for ways to sell the produce around March/April and get the contracts, but no such activity is occurring currently.

Prediction 

  • The situation is expected to worsen since production increases while the international demand is currently stable.
  • The quality of crops has also become a concern for the farmers across Binh Phuc of Vietnam and Cambodia due to the unfavourable weather the crops faced earlier.
  • As per market experts, crop quality can also affect the crop’s price in the future. Other factors that can affect the market and push it down further are:
  • Ocean freights are becoming friendlier with available containers.
  • The inflation rates in the US and Europe can lead the buyers to put a hold on how they spend the money on cashew imports. Also, both Europe and the US have older, high-quality stocks in the warehouse.
  • As per reports, a large stock of crops is available in Vietnam, while a new crop in huge quantities will arrive from Tanzania.

Price Trend In India

W240

Date Price
February 21$8,85 per kg FOB
February 17$8,82 per kg FOB