Europe, US Buying Keeps Cashew Market Steady

Cashew market was steady with a firm undertone last week and witnessed reasonable activity with Europe and the US and some sales were reported to off markets as well.

There was an usual burst of pre-Diwali activity in the domestic market. However, "things will probably be quiet for a couple of weeks before buying for the wedding season starts after Diwali i.e. mid-Nov", Mr Pankaj N. Sampat, a Mumbai-based dealer told Business Line.

Prices were more or less the same with slight improvement in some grades. The price range during the week for W240: $3.75-3.85; W320 $3.25-3.35; W450 $3.10-3.15; SW320 $3.30; SW360 $2.80-2.90; splits $2.10-2.20; butts $2.15-2.25 and pieces $1.60-1.70 for one lb (f.o.b.). Raw cashew nut (RCN) prices in Indonesia came down a bit to about $1,250-1,275 a tonne.Shellers are not very keen to sell large volumes for forwards unless they get some premium over current prices.

The feeling is that without a significant fall in RCN prices there is limited downside to the market but there is some possibility of a slow increase if demand picks up end of 2012 or early 2013.Most shellers have high priced inventory and are not likely to be in hurry to sell unless there is a big fall in demand or significant decline in replacement RCN prices.

Source www.thehindubusinessline.com