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

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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.