Since last month the cashew prices have not picked up; instead, they decreased earlier last month. The reason is believed to be lower demand for nuts in the US and the EU countries. However, after the decrease in the prices last month, the steady nature is currently being owed to Vietnam’s crop import.
It has been reported that Vietnam imported about 18.59% more in August 2021 than in August last year. The total import for August 2021 by Vietnam was about 274,736 mt RCN. It brought the country’s essence between January and August to a tally of 2,427,092 mt RCN, which increased by 124.24% compared to last year.
The imported weightage of raw cashew kernels with Testa by Vietnam for August 2021 was recorded at 6,411.45 MT, which is about 28,495 mt RCN. This made the import of seeds with Teasta by 58% in 2021 and 17% more import overall than August 2021.
Furthermore, Vietnam has also exported more cashew kernels by August 2021 compared to last year. It has been estimated that since January 2021, the country’s cashew export has increased by 22.79% compared to the previous year and 5.15% more than during August. In August 2021 alone, Vietnam exported 50,747 MT of cashew kernels.
Vietnam has exported 10.28% more cashew kernels in August compared to last year. The country shipped 15,647 MT of the nuts the previous month, and so far, the export quantity is higher by 8.15% compared to the same period in the last year.
For the EU and other countries, the export is higher by 6.96% for August compared to last year, and the overall export is also higher by 29.26% between January and August than last year.
However, the export to China has lowered in the last month compared to the previous year by 17.36%. Vietnam exported 4,565 MT of cashew kernels to China in August. Despite last month’s lower export figure, Vietnam has increased exports between January and August by 30% compared to the previous year, during the same period.
The market, however, did not act as it was anticipated earlier. There has been a significant slum in the import demands across the EU countries and even the US. Earlier it was expected buyers will start procuring for the rest of the month while negotiating for next year, but it hasn’t materialized. With the drop in the import activity, it will be interesting to note whether Vietnam will sell the entire kernel production since the country imported 124% more than last year.
The RCN stock must be sold off quickly as the window for the arrival of new crops from India, Vietnam, and Cambodia is just a few months away. In the urge to sell the RCN, Vietnamese BRC shippers have lowered prices for the rest of the year and even into few months for 2022.
There will be activity among the Tanzanian and Indonesian cashew crops before the new crops come from India, Vietnam, and Cambodia. So far, the reports state that both the country’s crops are better than last year and hence likely to be priced higher than the existing RCN stock.
In India, the market is holding steady for all the varieties of cashew. W240 closed last month and on September 6 at $8,21 per kg FOB after it dropped from $10,56 per kg FOB.
W320 dropped from $9,21 per kg FOB to $7,80 per kg FOB last month and closed at the same price on September 6. The situation was the same for W450 and LWP. While W450 decreased to $6,30 per kg FOB from $8,27 per kg, FOB and LWP closed the market at $5,54 per kg FOB after going downward from $7,46 per kg FOB. It will be interesting to note how the arrival of new crops will impact the prices.
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