Wednesday, 10 November 2010 23:21
The Citizen Correspondent
Mtwara. The Tandahimba and Newala Cooperative Union (TANECU) have made a call to cashew farmers in the area to sell their crops during this time, as many are said to store waiting for good price.
The TANECU chairman, Yusuf Nanila, told The Citizen in an interview that most of farmers have not yet brought their cashewnuts to the primary cooperative societies for selling.
He said the union estimated to buy 40,000 tonnes of cashewnut during this season, but by the moment only 14,000 tones have been bought by primary cooperative societies, while 36,000 tones are still on the hand of farmers.
“Last season there was a problem where by some farmer’s cashew was sold at low price, those were mainly sold at early time of buying season….now farmers are reluctant to sell their crops fearing for low price” said Mr. Nanila.
He analyzed that, in last buying season price for cashewnuts in the biding area was dropped especially to those brought at early of the season, the situation caused some farmers to receive little money during third installment, while those who sold late, they got a lot of money.
“They think the situation occurred last season likely to occur this time, that’s why they don’t sell their crops…I would like to call them to sell their crops this time as the price is high in the bid,” he noted.
He said since the opening of the season the biding price of cashewnuts is high but hopping to droop after a while, as buyers buy enough cargo for their demand.
“Now the price is good but farmers don’t want to sell their cashewnuts, my fear is that, they will sell their crops as price in the bidding warehouse have collapsed,” he commented.
Cashewnuts are bought under the warehouse receipt system, where by farmers are paid 70, percent of the price as they sell their crops to primary cooperative society and 30 percent are paid after cashewnuts sold by bidding process at warehouse.
The indicative price have raised from 710 last season to 800 this season as the payments stands on installments, first, second and sometimes third installment if the business goes in profit.
Thursday, November 11, 2010
Tuesday, June 22, 2010
MANGALORE CASHEW REPORTS...
Cashew Grades 06/12/10 06/19/10
Mangalore (Rs/11.34Kg) (without tax)
W180 5800 6000
S180 5350 5250
W210 4800 5000
S210 4500 4600
W240 4300 4350
S240 3900 4050
W320 3850 4000
W1 3725 3850
SW 3575 3725
SSW 3475 3600
JH 3500 3550
S 3350 3375
LWP 3000 2950
SWP 2775 2800
K 3100 3100
JB 3125 3150
Mangalore (Rs/11.34Kg) (without tax)
W180 5800 6000
S180 5350 5250
W210 4800 5000
S210 4500 4600
W240 4300 4350
S240 3900 4050
W320 3850 4000
W1 3725 3850
SW 3575 3725
SSW 3475 3600
JH 3500 3550
S 3350 3375
LWP 3000 2950
SWP 2775 2800
K 3100 3100
JB 3125 3150
CASHEW NEWS
Cashew News
Cashew exports on shaky ground
Exports of cashew continues to be lower this year as
compared to the last fi nancial year because both buyers
and sellers are not willing to take any risk due to
the volatile price situation. Volume of export for the
fi rst two months of the current fi nancial year is down
by 4% while value realisation for the period is down by
around 3.8% as compared to the same period of last
fi nancial year.
Interestingly, import of raw cashew has also come
down in the current fi nancial year, which also indicates
lower demand at both domestic and export market.
Unlike 2009-10, when imports were increasing despite
low exports, import of raw cashews has gone down by
more than 14% during the fi rst two months of 2010-
2011 while the total value of imports has come down
by 8%. Import of raw cashew in 2009-10 is higher by
15 % in value terms and 24% in volume terms. Cashew
kernel exports during the last fi nancial year was down
by 2.7 % in value terms and 1.2 % in volume terms
when compared to the same period of 2008-09.
Except for some brisk activity in the second half
of April, market has been quiet for more than two
months. This is a cause for concern as it adds to the
volatility, according to traders. Despite lack of activity,
there have been no sign of any large selling pressure,
they added. High price for raw cashew and slow
arrivals have lead to reduced processing. It has to be
seen whether processors can hold on till some large
buying interest comes in. Recent developments in the
fi nancial markets are adding to the concern about its
impact on the retail demand and ability to carry inventory.
On the buying side also, there is no rush to
buy, as there is uncertainty in the market. Nobody
seems to be in a mood to take large positions.
Traders are expecting the market to rebound during
September because of a supply crunch. According to
industry experts, buyers in Europe, Japan and Australia
do a major portion of their buying for the next season
during September –October. US buyers also stock
in advance for Christmas and other festivals. These
factors should provide a fl oor to the market in the top
half of the current range unless something dramatic
happens. Like a big drop...usage during May-August
leading to less need to buy or a worsening of the economic
situation leading to reduced contracting.
Cashew exports improve in May: CEPC
Cashew exports, affected in April due to the Euro crisis,
regained its momentum in May, though marginally
lower than last year in the same month. Exports
which had dipped to 7,802 ton and Rs.209.74 crore in
April, saw a robust pick-up to 8,746 ton and Rs.234.19
crore in May, though it was marginally short of the
year-ago fi gure of 8,835 ton and Rs.237.95 crore, according
to data given by Cashew Export Promotion
Council (CEPC).
During April, the cashew kernel exports had declined
mainly on account of slow pace of global recovery
and the Euro-zone debt crisis causing slowdown in
demand. Exports of the wonder nut, which was hit
last year due to global economic crisis, have been on
an upward trend since January this year. The fl uctuations
in prices and fall in Euro has contributed to
this upward trend in cashew exports, CEPC Secretary
Sashi Varma said adding that the global crisis is not
fully over yet and these fl uctuations in prices are normal.
When asked on the shipments scenario ahead, he
said, It is diffi cult to predict the future, we can only
hope for a better offtake. Indian processed cashew
nuts are shipped to the US, West Asia and Europe.
The cumulative exports during the fi rst fi ve months
also showed slight decline in volume at 42,616 ton
as compared to 42,704 ton. However, in value terms
it was at Rs.1,152 crore during January-May period
as against Rs.1,133.41 crore, the data showed. Meanwhile,
import of raw cashew nuts showed a declining
trend since last two months. In May, raw cashew import
stood at 92,016 ton compared to 92,818 ton.
However, in value terms, there was a slight improvement
due to price fl uctuation at Rs.360.86 crore
against Rs.338.88 crore in the same month last year.
News Highlights
Page 10
A Product of www.CashewInfo.com
CASHEW WEEK
The cumulative import of raw cashew during January-
May was fi rm both in terms of volume and value. In
volume terms, it stood at 2,29,241 ton during the fi rst
fi ve months this year compared to 2,23,087 ton in the
same period last year. While in value terms, the shipment
was at Rs.1,041.22 crore compared to 916.60
crore in the same period last year.
Cashew market active on Asian consumption
Cashew market was steady during the week with fair
amount of business taking place in different markets
at prevailing prices. Prices were more or less unchanged.
W240 was at around $3.15, W320 around
$2.95, W450 around $2.80 (f.o.b). As usual, some
processors sold at lower levels and some were able
to sell at higher levels, trade sources said. Indian domestic
market moved up a bit on broken grades, but
not much on wholes, they said.
Currently, there seems to be fair amount of buying
interest in the middle of $2.80 and $3 range with
buying resistance when prices come close to $3 and
selling reluctance when prices drop close to $2.80.
As we enter the peak Asian consumption period, we
can reasonably expect fi rmness in the market and increased
volatility due to the spot buying nature of
these markets. If there is need for any large contracting
in this period, we could see prices break the current
range. Despite a long period of inactivity, there
has not been so far any big selling pressure that we
normally see when market is quiet for even a couple
of weeks. Although some processors did sell at lower
levels, larger proportion seems to be willing to wait
and make sales when some buyers came in to pay the
levels they wanted. Reduced kernel availability and
the continued nearby buying by some market or the
other gives processors the comfort of being able to
sell when they want to.
Indian Infl ation stood at 17.21%
The index for primary articles group rose by 0.5 percent
to 301.7 from 300.3 for the previous week. The
annual rate of infl ation, calculated on point to point
basis, stood at 17.21 percent for the week ended 29
May 2010 (over 30 May 2009) as compared to 16.89
percent for the previous week.
The index for ‘Food Articles’ group rose by 0.4 percent
to 296.4 from 295.1 for the previous week due to
higher prices of beef & buffalo meat (8%), fi sh-marine
(3%) and urad, fruits & vegetables, arhar and moong
(1% each). However, the prices of bajra (1%) declined.
The index for ‘Non-Food Articles’ group rose by 1.0
percent to 285.7 from 283.0 for the previous week
due to higher prices of fodder and raw rubber (6%
each), raw cotton (3%), castor seed (2%) and raw silk,
groundnut seed and cotton seed (1% each). However,
the prices of raw jute (4%), rape & mustard seed (2%)
and skins (raw) (1%) declined.
The index for ‘Minerals’ group declined by 1.3 percent
to 674.9 from 684.0 for the previous week due to
lower prices of vermiculite (29%), feldspar (8%), iron
ore (2%) and magnesite (1%). However, the prices of
chromite (28%) and barytes (1%) moved up.
Cashew exports on shaky ground
Exports of cashew continues to be lower this year as
compared to the last fi nancial year because both buyers
and sellers are not willing to take any risk due to
the volatile price situation. Volume of export for the
fi rst two months of the current fi nancial year is down
by 4% while value realisation for the period is down by
around 3.8% as compared to the same period of last
fi nancial year.
Interestingly, import of raw cashew has also come
down in the current fi nancial year, which also indicates
lower demand at both domestic and export market.
Unlike 2009-10, when imports were increasing despite
low exports, import of raw cashews has gone down by
more than 14% during the fi rst two months of 2010-
2011 while the total value of imports has come down
by 8%. Import of raw cashew in 2009-10 is higher by
15 % in value terms and 24% in volume terms. Cashew
kernel exports during the last fi nancial year was down
by 2.7 % in value terms and 1.2 % in volume terms
when compared to the same period of 2008-09.
Except for some brisk activity in the second half
of April, market has been quiet for more than two
months. This is a cause for concern as it adds to the
volatility, according to traders. Despite lack of activity,
there have been no sign of any large selling pressure,
they added. High price for raw cashew and slow
arrivals have lead to reduced processing. It has to be
seen whether processors can hold on till some large
buying interest comes in. Recent developments in the
fi nancial markets are adding to the concern about its
impact on the retail demand and ability to carry inventory.
On the buying side also, there is no rush to
buy, as there is uncertainty in the market. Nobody
seems to be in a mood to take large positions.
Traders are expecting the market to rebound during
September because of a supply crunch. According to
industry experts, buyers in Europe, Japan and Australia
do a major portion of their buying for the next season
during September –October. US buyers also stock
in advance for Christmas and other festivals. These
factors should provide a fl oor to the market in the top
half of the current range unless something dramatic
happens. Like a big drop...usage during May-August
leading to less need to buy or a worsening of the economic
situation leading to reduced contracting.
Cashew exports improve in May: CEPC
Cashew exports, affected in April due to the Euro crisis,
regained its momentum in May, though marginally
lower than last year in the same month. Exports
which had dipped to 7,802 ton and Rs.209.74 crore in
April, saw a robust pick-up to 8,746 ton and Rs.234.19
crore in May, though it was marginally short of the
year-ago fi gure of 8,835 ton and Rs.237.95 crore, according
to data given by Cashew Export Promotion
Council (CEPC).
During April, the cashew kernel exports had declined
mainly on account of slow pace of global recovery
and the Euro-zone debt crisis causing slowdown in
demand. Exports of the wonder nut, which was hit
last year due to global economic crisis, have been on
an upward trend since January this year. The fl uctuations
in prices and fall in Euro has contributed to
this upward trend in cashew exports, CEPC Secretary
Sashi Varma said adding that the global crisis is not
fully over yet and these fl uctuations in prices are normal.
When asked on the shipments scenario ahead, he
said, It is diffi cult to predict the future, we can only
hope for a better offtake. Indian processed cashew
nuts are shipped to the US, West Asia and Europe.
The cumulative exports during the fi rst fi ve months
also showed slight decline in volume at 42,616 ton
as compared to 42,704 ton. However, in value terms
it was at Rs.1,152 crore during January-May period
as against Rs.1,133.41 crore, the data showed. Meanwhile,
import of raw cashew nuts showed a declining
trend since last two months. In May, raw cashew import
stood at 92,016 ton compared to 92,818 ton.
However, in value terms, there was a slight improvement
due to price fl uctuation at Rs.360.86 crore
against Rs.338.88 crore in the same month last year.
News Highlights
Page 10
A Product of www.CashewInfo.com
CASHEW WEEK
The cumulative import of raw cashew during January-
May was fi rm both in terms of volume and value. In
volume terms, it stood at 2,29,241 ton during the fi rst
fi ve months this year compared to 2,23,087 ton in the
same period last year. While in value terms, the shipment
was at Rs.1,041.22 crore compared to 916.60
crore in the same period last year.
Cashew market active on Asian consumption
Cashew market was steady during the week with fair
amount of business taking place in different markets
at prevailing prices. Prices were more or less unchanged.
W240 was at around $3.15, W320 around
$2.95, W450 around $2.80 (f.o.b). As usual, some
processors sold at lower levels and some were able
to sell at higher levels, trade sources said. Indian domestic
market moved up a bit on broken grades, but
not much on wholes, they said.
Currently, there seems to be fair amount of buying
interest in the middle of $2.80 and $3 range with
buying resistance when prices come close to $3 and
selling reluctance when prices drop close to $2.80.
As we enter the peak Asian consumption period, we
can reasonably expect fi rmness in the market and increased
volatility due to the spot buying nature of
these markets. If there is need for any large contracting
in this period, we could see prices break the current
range. Despite a long period of inactivity, there
has not been so far any big selling pressure that we
normally see when market is quiet for even a couple
of weeks. Although some processors did sell at lower
levels, larger proportion seems to be willing to wait
and make sales when some buyers came in to pay the
levels they wanted. Reduced kernel availability and
the continued nearby buying by some market or the
other gives processors the comfort of being able to
sell when they want to.
Indian Infl ation stood at 17.21%
The index for primary articles group rose by 0.5 percent
to 301.7 from 300.3 for the previous week. The
annual rate of infl ation, calculated on point to point
basis, stood at 17.21 percent for the week ended 29
May 2010 (over 30 May 2009) as compared to 16.89
percent for the previous week.
The index for ‘Food Articles’ group rose by 0.4 percent
to 296.4 from 295.1 for the previous week due to
higher prices of beef & buffalo meat (8%), fi sh-marine
(3%) and urad, fruits & vegetables, arhar and moong
(1% each). However, the prices of bajra (1%) declined.
The index for ‘Non-Food Articles’ group rose by 1.0
percent to 285.7 from 283.0 for the previous week
due to higher prices of fodder and raw rubber (6%
each), raw cotton (3%), castor seed (2%) and raw silk,
groundnut seed and cotton seed (1% each). However,
the prices of raw jute (4%), rape & mustard seed (2%)
and skins (raw) (1%) declined.
The index for ‘Minerals’ group declined by 1.3 percent
to 674.9 from 684.0 for the previous week due to
lower prices of vermiculite (29%), feldspar (8%), iron
ore (2%) and magnesite (1%). However, the prices of
chromite (28%) and barytes (1%) moved up.
Cashew production likely to hit this year
Cashew production likely to hit this year
Guinea Bissau: HGuinea Bissau: High temperatures
recorded in the country and military intervention in
April affect cashew season in Guinea Bissau. High
temperatures in April and May dried out the fl owers at
the peak of the season, will affect the yield of the crop.
Currently the industry is hoping to harvest at least the
last year’s fi gure of 136,000 tons, as compared to a
previous target of 150,000 tons. Cashews are Guinea
Bissau’s main export products and India is the main
market to buy the product. Guinea Bissau supplies
cashew nuts to the World during May – June – July.
Cambodia: Cashew harvest season ended in May in
Cambodia. In the current year, the Kompong Cham
province’s cashew yield had dropped by roughly a
quarter over the past year, from 40,000 tons to 30,000
tons. This decrease is due to replantation of a new
variety of cashew tree that is supposed to yield more
cashews, but it is still not ready to be harvested.
Hence the lack of cashew supply coupled with good
demand from Vietnam has brought the price of
cashew nuts to a new high. The price of cashews
increased from 3,500 riel (about 0.8 U.S. dollar) per
kg in February to 4,300 riel (1 U.S. dollar) per kg in
May. Last year cashew prices were at 2,800 riel per kg.
Vietnam: Vietnam cashew sector is facing a shortage
of nuts to process as the 2010 crop output has fallen by
15 percent, or 50,000 tons less than last year’s crop.
This was mainly due to the prolonged hot and sunny
Cashew production likely to hit this year
weather, which stunts the plant growth, especially
when it fl owers, which subsequently results in fewer
tons per acre. With a 15-percent decrease in the
cashew output, Vinacas forecasts that this year the
country will have to import 300,000 tons of raw
cashew nuts, 50,000 tons more than 2009. The price
for cashew nuts also increases as demand for cashew
products is rising sharply in the US and Europe.
India: Unfavourable weather this year has reduced
cashew nut production by at least 35 per cent in Goa.
The winter was warm during fl owering stage and
cloudy skies persisted later during fruit formation.
Hence the rains in December and a short winter
brought down this season’s production by around 26
per cent to 17,000 tons from around 23,000 tons.
Things are not very different other states too.
Kerala, Karnataka and Andhra Pradesh also reported
a shortage in excess of 35 per cent over last year.
Orissa also suffered a burning heat wave (more
than 40 degree Celsius) in the entire region during
the harvesting stage because of “para”. Hence the
production level has gone down. Harvesting has
got over almost in entire cashew growing areas
and the fi nal production fi gures are yet to come.
Other centres in Goa, Maharashtra and Orissa
report 75 to 85 pc crops. Therefore overall
availability in the global scenario could mean
at least 200000 metric tons less available.
Guinea Bissau: HGuinea Bissau: High temperatures
recorded in the country and military intervention in
April affect cashew season in Guinea Bissau. High
temperatures in April and May dried out the fl owers at
the peak of the season, will affect the yield of the crop.
Currently the industry is hoping to harvest at least the
last year’s fi gure of 136,000 tons, as compared to a
previous target of 150,000 tons. Cashews are Guinea
Bissau’s main export products and India is the main
market to buy the product. Guinea Bissau supplies
cashew nuts to the World during May – June – July.
Cambodia: Cashew harvest season ended in May in
Cambodia. In the current year, the Kompong Cham
province’s cashew yield had dropped by roughly a
quarter over the past year, from 40,000 tons to 30,000
tons. This decrease is due to replantation of a new
variety of cashew tree that is supposed to yield more
cashews, but it is still not ready to be harvested.
Hence the lack of cashew supply coupled with good
demand from Vietnam has brought the price of
cashew nuts to a new high. The price of cashews
increased from 3,500 riel (about 0.8 U.S. dollar) per
kg in February to 4,300 riel (1 U.S. dollar) per kg in
May. Last year cashew prices were at 2,800 riel per kg.
Vietnam: Vietnam cashew sector is facing a shortage
of nuts to process as the 2010 crop output has fallen by
15 percent, or 50,000 tons less than last year’s crop.
This was mainly due to the prolonged hot and sunny
Cashew production likely to hit this year
weather, which stunts the plant growth, especially
when it fl owers, which subsequently results in fewer
tons per acre. With a 15-percent decrease in the
cashew output, Vinacas forecasts that this year the
country will have to import 300,000 tons of raw
cashew nuts, 50,000 tons more than 2009. The price
for cashew nuts also increases as demand for cashew
products is rising sharply in the US and Europe.
India: Unfavourable weather this year has reduced
cashew nut production by at least 35 per cent in Goa.
The winter was warm during fl owering stage and
cloudy skies persisted later during fruit formation.
Hence the rains in December and a short winter
brought down this season’s production by around 26
per cent to 17,000 tons from around 23,000 tons.
Things are not very different other states too.
Kerala, Karnataka and Andhra Pradesh also reported
a shortage in excess of 35 per cent over last year.
Orissa also suffered a burning heat wave (more
than 40 degree Celsius) in the entire region during
the harvesting stage because of “para”. Hence the
production level has gone down. Harvesting has
got over almost in entire cashew growing areas
and the fi nal production fi gures are yet to come.
Other centres in Goa, Maharashtra and Orissa
report 75 to 85 pc crops. Therefore overall
availability in the global scenario could mean
at least 200000 metric tons less available.
FOB Prices of cashew nut in USD /lb (Cochin/Tuticorin)
Grades 06/12/10 06/19/10
W-240 3.15 3.15
W-320 2.90-2.95 2.90-2.95
W-450 2.75-2.80 2.75-2.80
WS/FS 2.45-2.50 2.45-2.50
WB/FB 2.45-2.50 2.45-2.50
SW320 2.80 2.80
SW360 2.70 2.70
SSW 2.25 2.25
LP/LWP 1.70 1.70
Note: W = Whole White, SW = Scorched Wholes, SSW =
Scorched Wholes Seconds, LWP = Large White Pieces,
WS = White Splits, WB = White Butts, FS = Fancy
Splits, FB = Fancy Butts, SS = Scorched Splits, SB =
Scorched Butts, SP = Scorched Pieces, LP = Large Pieces
Average FOB prices (USD /lb) of W-320 grade
Cashew market was steady in week 24. Fair amount
of business was done to several markets. However,
the prices were more or less unchanged at previous
levels. The FOB price for W-320 grade kernels was
stood steady at 2.90-2.95 per lb for the second
consecutive week.
Grades 06/12/10 06/19/10
W-240 3.15 3.15
W-320 2.90-2.95 2.90-2.95
W-450 2.75-2.80 2.75-2.80
WS/FS 2.45-2.50 2.45-2.50
WB/FB 2.45-2.50 2.45-2.50
SW320 2.80 2.80
SW360 2.70 2.70
SSW 2.25 2.25
LP/LWP 1.70 1.70
Note: W = Whole White, SW = Scorched Wholes, SSW =
Scorched Wholes Seconds, LWP = Large White Pieces,
WS = White Splits, WB = White Butts, FS = Fancy
Splits, FB = Fancy Butts, SS = Scorched Splits, SB =
Scorched Butts, SP = Scorched Pieces, LP = Large Pieces
Average FOB prices (USD /lb) of W-320 grade
Cashew market was steady in week 24. Fair amount
of business was done to several markets. However,
the prices were more or less unchanged at previous
levels. The FOB price for W-320 grade kernels was
stood steady at 2.90-2.95 per lb for the second
consecutive week.
CASHEW BULLETIN
Cashew Bulletin
A little more activity was seen this week in Europe
as the Euro strengthened and prices from origin
dropped a little. Inventories remain tight and the
pattern of short-term cover continues. The next few
weeks could remain very quiet as we approach the
holiday season for the Europeans not to mention the
distraction of the World Cup. Further distraction and
some nervousness have been added by the news that
a couple of UK trading houses has gone out of business.
This is no surprise and was predicted in the
Cashew Bulletin some months ago. Will there be a
domino effect? Had those fi rms major commitments
on cashew kernels? Only time will tell.
There will be little change in the fundamentals over
the coving twelve weeks as the next harvests are
in Sept/Oct in Brazil and Indonesia. It will be about
demand for now and just how well the busy season
in Asia and the Middle East goes closely followed by
cover for the run into the end of the year in Europe
and the USA. For the time being demand is not
promising and there are the ingredients for a price
correction in the marketplace. The next move looks
largely dependent on the management of RCN stockpiles
and the timing of the next wave of cover taking.
A little more activity was seen this week in Europe
as the Euro strengthened and prices from origin
dropped a little. Inventories remain tight and the
pattern of short-term cover continues. The next few
weeks could remain very quiet as we approach the
holiday season for the Europeans not to mention the
distraction of the World Cup. Further distraction and
some nervousness have been added by the news that
a couple of UK trading houses has gone out of business.
This is no surprise and was predicted in the
Cashew Bulletin some months ago. Will there be a
domino effect? Had those fi rms major commitments
on cashew kernels? Only time will tell.
There will be little change in the fundamentals over
the coving twelve weeks as the next harvests are
in Sept/Oct in Brazil and Indonesia. It will be about
demand for now and just how well the busy season
in Asia and the Middle East goes closely followed by
cover for the run into the end of the year in Europe
and the USA. For the time being demand is not
promising and there are the ingredients for a price
correction in the marketplace. The next move looks
largely dependent on the management of RCN stockpiles
and the timing of the next wave of cover taking.
FCA Rotterdam Prices (USD / lbs)
FCA Rotterdam Prices (USD / lbs)
Grades 06/12/10 06/19/10
W 240 3.25-3.30 3.30
W 320 3.05-3.10 3.05-3.10
W 450 2.85
Grades 06/12/10 06/19/10
W 240 3.25-3.30 3.30
W 320 3.05-3.10 3.05-3.10
W 450 2.85
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