According insights for July 20 2009 by Pankaj N. Sampat (FoodBizDaily.com) the Indian Cashew Market was quiet last week but undertone to be firm… There seems to be reasonable interest at last week’s levels but sellers prefer to wait. Some trades were done few cents higher – W240 between 2.90-2.95, W320 around 2.65 and W450 between 2.35-2.40 FOB – and now sellers are asking few cents more.
RCN market is steady. Trades for good quality GB around 900 and Senegal/Gambia around 850 C&F. Low quality IVC being offered at low levels but little interest. Vietnam is reported to have bought good quantity in last few weeks.
Large processors have adequate sales – at lower than current levels – for next few months. They are not in a hurry to sell limited unsold quantities and waiting for the next uptick to make some sales. For forwards, they are asking for premiums to provide cushion for expected higher RCN prices and any possible increase in kernel demand & prices.
Buyers are picking up quantities – nearbys and forwards – when they see reasonable offers but they do not seem to have enough confidence in demand to take on large positions or pay the premium that large processors want (need). As a result, they have had to continue buying nearbys – since March 2009, each month has seen market settling in a higher range. This has also helped medium & small processors who are selling (able to sell) only for nearbys.
At current levels – slightly higher than long term average & significantly higher than end 2008/beg 2009 – the kernel market is very delicately poised. Although there could be a slight dip in market if buyers keep away from market, any large decline is unlikely unless there is a big drop in activity. If the buyers have limited needs for 2009 shipments, market may not move much and we will see business being done around current levels for early / FH 2010 shipments. But if there are significant uncovered positions for 2009, prices could move up few percentage points in next 2-3 months.
RCN market is steady. Trades for good quality GB around 900 and Senegal/Gambia around 850 C&F. Low quality IVC being offered at low levels but little interest. Vietnam is reported to have bought good quantity in last few weeks.
Large processors have adequate sales – at lower than current levels – for next few months. They are not in a hurry to sell limited unsold quantities and waiting for the next uptick to make some sales. For forwards, they are asking for premiums to provide cushion for expected higher RCN prices and any possible increase in kernel demand & prices.
Buyers are picking up quantities – nearbys and forwards – when they see reasonable offers but they do not seem to have enough confidence in demand to take on large positions or pay the premium that large processors want (need). As a result, they have had to continue buying nearbys – since March 2009, each month has seen market settling in a higher range. This has also helped medium & small processors who are selling (able to sell) only for nearbys.
At current levels – slightly higher than long term average & significantly higher than end 2008/beg 2009 – the kernel market is very delicately poised. Although there could be a slight dip in market if buyers keep away from market, any large decline is unlikely unless there is a big drop in activity. If the buyers have limited needs for 2009 shipments, market may not move much and we will see business being done around current levels for early / FH 2010 shipments. But if there are significant uncovered positions for 2009, prices could move up few percentage points in next 2-3 months.
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