KOCHI, APRIL 17:
The global cashew market was quiet and soft last week after being steady for several weeks.
The domestic market, which was subdued for several weeks, saw some activity with a slight increase in prices.
During the last one month, there has not been much change in the price range viz., W240 from $3.90-4.10 / W320 $3.35-3.50 / W450 and SW320 $3.05-3.20, splits $2.20-2.30 and pieces $1.50-1.60 an lb (fob).
During this period, a reasonable volume has been traded for second quarter shipments, not much has been traded for the second half, Pankaj N. Sampat, a Mumbai-based dealer toldBusiness Line.
“In the next 8-10 weeks, we will continue to get confusing reports on the supply side,” he claimed. Picture will be clearer by end-June.
But, overall feeling is that availability in 2013 would be same as 2012; downside on prices is limited and any price decline will be more on account of lower yield rather than increased availability, he said.
Demand prospects continue to be hazy.
Gut feeling is that demand in most markets should be better considering prices have been steady at relatively low levels for a reasonably long time.
Except for 2011 when prices were very high, usage in Asia has always been good.
Over the last few months, “we have seen that when prices have been moving sideways in the $3.30-3.50 range. When prices are in lower half of the range, there is good buying interest from all markets but selling is limited to nearbys and at that time some business is done for forwards at the higher end of the range.”
When nearby prices are at higher end of the range, buyers are reluctant to pay additional premium for forward positions and this makes the market quiet again.
Unless something dramatic happens on the supply side leading to higher raw cashew prices, “we expect that market will continue to move in the current range,” the trade said.
Source: Business Line