Technology turns cashew-nut shells into “gold”

Cardanol is a natural phenol obtained from anacardic acid, the main element of cashew nut shell oil. The oil is highly effective against metal corrosion and is used in many industries. Cashew nuts are one of Vietnam’s important industrial crops. Vietnam raw cashew output averages well above 300,000 tonnes over the years. However, after harvesting and processing of cashew nuts, the shells have usually been thrown away. Scientists believe that if the shells can be properly treated, the waste will turn into ‘gold’ and bring high profits.

It is estimated that one ton of dried cashew can produce 700-750 kilos of shells from which 154 kilos of cashew nut shell oil is created. Cashew nut shell oil can be used as industrial fuel which is 60 percent less costly than FO.

It is estimated that one ton of dried cashew can produce 700-750 kilos of shells from which 154 kilos of cashew nut shell oil is created. The oil can also be used as material to make adhesives, anti-corrosive metal, insulating materials, electronic products boards, forest product preservatives, and structural wood treatment liquid.

In 1999, Vietnam began exporting cashew nut shell oil. At that time, the export volume was modest, 1,000 tons only. The figure rose to 80,000 tons in 2011. Vietnamese enterprises export 600,000 tons of the oil to China, South Korea, Indonesia and Spain. A representative of F.T.E Technology Development said cashew nut shell oil brings $7 million a year to the company with the profitability rate of 20 percent.  He said that Vietnam has great advantages to become a world’s cashew nut shell oil production base.

However, most Vietnamese enterprises export cashew nut shell oil as fuel or raw material. They could even earn bigger money if they developed more valuable products from cashew nut shell oil, such as Carnadol. In countries with hot weather and high humidity like Vietnam, the demand for substances which can protect construction works, machines and equipment from corrosion is especially high. Carnadol is a good solution.

A group of scientists from the Youth Scientific and Technological Promotion Center (TST) headed by Pham Quoc Nghiep recently conducted research on using carnadol to make a green corrosion inhibitor to protect metallic materials from corrosion. The researchers used the cardanol extraction method from cashew nut shell with supercritical CO2 technology. The carnadol content obtained was 23 percent with a purity of 68.6 percent. The product can protect metal at a high rate of 84 percent.

Source:http://english.vietnamnet.vn

Who wants to be a cashew farmer in Ghana?

Since the early 1960s when cashew cultivation began in Ghana it has steadily, albeit slowly, blossomed into a significant economic tree crop with a high potential of leading the non-traditional export category in foreign revenue generation.

The steady growth of the cashew sub-sector may be largely attributed to the relative stability and the conducive business environment in the country and the concerted action of private sector players; Non-Governmental Organisations (NGOs) and some state agencies to ensure a vibrant cashew sub-sector.

Although the earliest cashew farms were started irregularly in the Central and Greater-Accra regions, over the years, the Brong-Ahafo, Northern, Upper East and West regions had established themselves as consistent cashew producers in Ghana.

In the crop’s infant years in Ghana, the lack of appropriate husbandry practices, the absence of market structures and the resultant low producer prices seriously impeded the development of cashew as an attractive cash crop. Until the early 1980s when it was identified as a major non-traditional crop in the Government’s efforts to diversify the country’s export base, cashew cultivation in Ghana had received far too little national recognition.

The efforts of expert groups like the Ministry of Agriculture’s Agro-Forestry Unit, the Forestry Commission, the Ghana Export Promotion Council, the Africa Cashew Alliance, the African Cashew Initiative (which enjoys funding from the Bill and Melinda Gates Foundation), some financial institutions, a number of stakeholder NGOs and private companies have contributed immensely to the transformation of cashew farming into its present stature.

Today, Ghana’s cashew industry directly engages at least 300,000 farmers on a full time basis, along with a range of ancillary employment avenues for some 200,000 people (who work as agents, transporters, shippers etc).

The cashew crop in Ghana has grown from a meagre 4,000 metric tons per annum as recorded in 1997, to about 70,000 metric tons recorded last year and boasts of some 13 processing companies with an installed capacity of 35,000 metric tonnes per year.

With regards to export, which strategically drives the industry, cashew is estimated to have generated US$244 million for the Government from a total export of 163,000 metric tonnes in 2016 alone.

Characteristically, Ghana exports quite a larger volume of cashew than it produces, thanks, possibly, to what is perceived as her conducive business environment, which encourages inflows of considerable quantities of nuts from neigbouring countries like La Cote D’Ivoire and Burkina Faso.

Although the cashew business environment in Ghana has improved tremendously in recent years following the sharp hike in demand for raw nuts in many overseas consumer markets, Ghanaian cashew farmers, for good reason, are worried and apprehensive about the future and about the sustainability of their businesses.

It is important to note that in Ghana, the cashew crop is predominantly cultivated by smallholder farmers who, altogether, account for about 88 per cent of cashew farms. On the average, each of these smallholder farms ranges in size from 0.8 hectares to 3.0 hectares and the majority rely on family labour or hired labour, especially for weeding and harvesting.

In spite of all the apparent progress made in the industry, culminating in the formation of the Ghana Cashew Industry Association four years ago, the average cashew farmer in Ghana is plagued with many debilitating problems. Notable among these are the absence of adequate market information systems, the lack of agricultural extension support system for training farmers in good agricultural practices, poor and unstable pricing for the produce, the lack of affordable funding and sometimes the lack of ready and reliable markets for their produce.

As a tree crop, the cultivation of cashew is a very sophisticated operation, requiring some degree of technical expertise, especially in its grafting processes.

Farmers constantly need guidance and direction from knowledgeable extension officers to encourage them to apply the requisite crop husbandry practices to optimize yield.

In spite of the wealth of foreign revenue ploughed in annually by cashew, the fate of most smallholder farmers have dangled dangerously due to government’s usually unpredictable decisions to either ban or un-ban the export of the crop - the former action often resulting in the destabilisation or outright dipping of producer prices right from the farm gates, and subsequently affecting the income levels of farmers and the living standards of families and grower communities.

It is hoped that in the spirit of the Government’s renewed determination to diversify the country’s economy and generate adequate foreign revenue to facilitate development, the burgeoning cashew sub-sector shall be spared any artificial constrictions and be allowed to flourish naturally and freely into a true leader in the non-traditional export category.

Source: GNA

Cashew Market Report – 14 Aug 2017

By end June / early July 2017, Cashew Prices had come down from the peak of May 2017. For the last 4-6 weeks, market has been steady and there has not been much change in prices.

Current offers are in a wide range : W240 from 5.10 to 5.30, W320 from 4.85 to 5.15, W450 from 4.80 to 5.00, Splits from 4.35 to 4.60, LP from 3.75 to 3.95 FOB.

Most of the price decline has been in W240 & W320 from small and medium processors. Broken grades, on the other hand, have moved up and continue to be firm. The large processors have adequate sales and are not yet under pressure to make any big reduction in offers. Although their current offers are certainly below the peak of May 2017, they are still about 20-30 cents higher than the low end of the current range.   And they are able to sell at these higher levels.

Since processors have paid very high prices for RCN this year, they will resist reducing kernel prices until they absolutely have to sell. Reflecting that, the current lower prices from small & medium processors are because they need sales to be able to continue buying RCN to keep factories running.

Demand from most markets has been steady despite the high prices. Reasonable volumes are being traded every few weeks. This is keeping the market steady within a range.   Even now despite the relative quietness, there is some business being done for Oct-Dec shipments. It is not clear whether this buying is to fulfill old commitments or roasters are able to make new sales with current prices.

Indian demand has been slow for last several weeks. During May & June, wholesalers were not building stocks due to the new Sales Tax system coming into effect on 01 July. Fact that prices were are historic highs in May/June was additional reason not to build inventory. During July/Aug, people are getting rid of old stocks and getting used to the new system.  Indian festivals start from Aug with the peak in mid Oct. We should have idea of how market reacts to the high prices by end Aug/early Sep.

If kernel demand picks up in Sep/Oct, prices will move up again… otherwise, we may see the market drifting slowly in coming weeks with a big decline possible only if there is a significant fall in demand for end of 2017 & beg of 2018 deliveries.

RCN prices have also come down from the peaks of May/June but that is mainly because (a) at the end of the season, kernel yields now are much lower (b) there is a bunching of shipments putting some pressure on the availability of funds in the chain.   Most of the 2017 RCN has been bought by at very high levels. RCN prices in 2017 have been about 25% higher than 2016 and 50% higher than 2015 (and about 75% higher than the 5-7 years average !! ). At these historic high levels – never seen before – risks are very high.

During Oct to Mar, shellers will have to depend on Southern Crop (about 25% of World production) apart from the trader stocks of West Africa RCN. Since availability is small, there may not be much change in RCN prices unless there is a big fall in kernel demand in coming weeks. The next big move in RCN prices will happen only Feb/Mar 2018 when the Northern Crop starts.

If Southern crop RCN prices (last quarter of 2017) are significantly lower it will certainly have impact on the 2018 Northern crop.  Lower RCN prices in last quarter is possible only if there is a significant decline in kernel demand in Sep-Dec 2017.  If kernels continue to be bought at current levels till end of the year we do not see much chance of any decline till middle of 2018 (and that too, if the 2018 crops are good).

If roasters make good sales in coming months for first and/or second quarters of 2018, they will either have to buy now or go into 2018 with a short position. Both cases will lead to a strong RCN demand when 2018 season begins and prices will not come down.

Considering that prices of other nuts have been gradually moving up in the last few months from the lows of end 2016/early 2017, there may not be any big adverse affect on cashew contracting for 2018.

To my mind, a significant decline in prices – RCN or kernels – will happen only when there is a big drop in kernel demand.   When and at what level and to what extent this will happen are very very difficult questions to answer !!

Until there is some indication of 2018 demand trend, it would be prudent for both shellers & buyers to be partly covered till first quarter 2018 because market could move sharply depending on what happens in last quarter of 2017.

Regards
Pankaj N. Sampat
SAMSONS TRADERS
Mumbai – India
Phone +91 22 64564300

Cashew Market Report – 14 Aug 2017

By end June / early July 2017, Cashew Prices had come down from the peak of May 2017. For the last 4-6 weeks, market has been steady and there has not been much change in prices.

Current offers are in a wide range : W240 from 5.10 to 5.30, W320 from 4.85 to 5.15, W450 from 4.80 to 5.00, Splits from 4.35 to 4.60, LP from 3.75 to 3.95 FOB.

Most of the price decline has been in W240 & W320 from small and medium processors. Broken grades, on the other hand, have moved up and continue to be firm. The large processors have adequate sales and are not yet under pressure to make any big reduction in offers. Although their current offers are certainly below the peak of May 2017, they are still about 20-30 cents higher than the low end of the current range.   And they are able to sell at these higher levels.

Since processors have paid very high prices for RCN this year, they will resist reducing kernel prices until they absolutely have to sell. Reflecting that, the current lower prices from small & medium processors are because they need sales to be able to continue buying RCN to keep factories running.

Demand from most markets has been steady despite the high prices. Reasonable volumes are being traded every few weeks. This is keeping the market steady within a range.   Even now despite the relative quietness, there is some business being done for Oct-Dec shipments. It is not clear whether this buying is to fulfill old commitments or roasters are able to make new sales with current prices.

Indian demand has been slow for last several weeks. During May & June, wholesalers were not building stocks due to the new Sales Tax system coming into effect on 01 July. Fact that prices were are historic highs in May/June was additional reason not to build inventory. During July/Aug, people are getting rid of old stocks and getting used to the new system.  Indian festivals start from Aug with the peak in mid Oct. We should have idea of how market reacts to the high prices by end Aug/early Sep.

If kernel demand picks up in Sep/Oct, prices will move up again… otherwise, we may see the market drifting slowly in coming weeks with a big decline possible only if there is a significant fall in demand for end of 2017 & beg of 2018 deliveries.

RCN prices have also come down from the peaks of May/June but that is mainly because (a) at the end of the season, kernel yields now are much lower (b) there is a bunching of shipments putting some pressure on the availability of funds in the chain.   Most of the 2017 RCN has been bought by at very high levels. RCN prices in 2017 have been about 25% higher than 2016 and 50% higher than 2015 (and about 75% higher than the 5-7 years average !! ). At these historic high levels – never seen before – risks are very high.

During Oct to Mar, shellers will have to depend on Southern Crop (about 25% of World production) apart from the trader stocks of West Africa RCN. Since availability is small, there may not be much change in RCN prices unless there is a big fall in kernel demand in coming weeks. The next big move in RCN prices will happen only Feb/Mar 2018 when the Northern Crop starts.

If Southern crop RCN prices (last quarter of 2017) are significantly lower it will certainly have impact on the 2018 Northern crop.  Lower RCN prices in last quarter is possible only if there is a significant decline in kernel demand in Sep-Dec 2017.  If kernels continue to be bought at current levels till end of the year we do not see much chance of any decline till middle of 2018 (and that too, if the 2018 crops are good).

If roasters make good sales in coming months for first and/or second quarters of 2018, they will either have to buy now or go into 2018 with a short position. Both cases will lead to a strong RCN demand when 2018 season begins and prices will not come down.

Considering that prices of other nuts have been gradually moving up in the last few months from the lows of end 2016/early 2017, there may not be any big adverse affect on cashew contracting for 2018.

To my mind, a significant decline in prices – RCN or kernels – will happen only when there is a big drop in kernel demand.   When and at what level and to what extent this will happen are very very difficult questions to answer !!

Until there is some indication of 2018 demand trend, it would be prudent for both shellers & buyers to be partly covered till first quarter 2018 because market could move sharply depending on what happens in last quarter of 2017.

Regards
Pankaj N. Sampat
SAMSONS TRADERS
Mumbai – India
Phone +91 22 64564300

Cashew Market Report – 14 Aug 2017

By end June / early July 2017, Cashew Prices had come down from the peak of May 2017. For the last 4-6 weeks, market has been steady and there has not been much change in prices.

Current offers are in a wide range : W240 from 5.10 to 5.30, W320 from 4.85 to 5.15, W450 from 4.80 to 5.00, Splits from 4.35 to 4.60, LP from 3.75 to 3.95 FOB.

Most of the price decline has been in W240 & W320 from small and medium processors. Broken grades, on the other hand, have moved up and continue to be firm. The large processors have adequate sales and are not yet under pressure to make any big reduction in offers. Although their current offers are certainly below the peak of May 2017, they are still about 20-30 cents higher than the low end of the current range.   And they are able to sell at these higher levels.

Since processors have paid very high prices for RCN this year, they will resist reducing kernel prices until they absolutely have to sell. Reflecting that, the current lower prices from small & medium processors are because they need sales to be able to continue buying RCN to keep factories running.

Demand from most markets has been steady despite the high prices. Reasonable volumes are being traded every few weeks. This is keeping the market steady within a range.   Even now despite the relative quietness, there is some business being done for Oct-Dec shipments. It is not clear whether this buying is to fulfill old commitments or roasters are able to make new sales with current prices.

Indian demand has been slow for last several weeks. During May & June, wholesalers were not building stocks due to the new Sales Tax system coming into effect on 01 July. Fact that prices were are historic highs in May/June was additional reason not to build inventory. During July/Aug, people are getting rid of old stocks and getting used to the new system.  Indian festivals start from Aug with the peak in mid Oct. We should have idea of how market reacts to the high prices by end Aug/early Sep.

If kernel demand picks up in Sep/Oct, prices will move up again… otherwise, we may see the market drifting slowly in coming weeks with a big decline possible only if there is a significant fall in demand for end of 2017 & beg of 2018 deliveries.

RCN prices have also come down from the peaks of May/June but that is mainly because (a) at the end of the season, kernel yields now are much lower (b) there is a bunching of shipments putting some pressure on the availability of funds in the chain.   Most of the 2017 RCN has been bought by at very high levels. RCN prices in 2017 have been about 25% higher than 2016 and 50% higher than 2015 (and about 75% higher than the 5-7 years average !! ). At these historic high levels – never seen before – risks are very high.

During Oct to Mar, shellers will have to depend on Southern Crop (about 25% of World production) apart from the trader stocks of West Africa RCN. Since availability is small, there may not be much change in RCN prices unless there is a big fall in kernel demand in coming weeks. The next big move in RCN prices will happen only Feb/Mar 2018 when the Northern Crop starts.

If Southern crop RCN prices (last quarter of 2017) are significantly lower it will certainly have impact on the 2018 Northern crop.  Lower RCN prices in last quarter is possible only if there is a significant decline in kernel demand in Sep-Dec 2017.  If kernels continue to be bought at current levels till end of the year we do not see much chance of any decline till middle of 2018 (and that too, if the 2018 crops are good).

If roasters make good sales in coming months for first and/or second quarters of 2018, they will either have to buy now or go into 2018 with a short position. Both cases will lead to a strong RCN demand when 2018 season begins and prices will not come down.

Considering that prices of other nuts have been gradually moving up in the last few months from the lows of end 2016/early 2017, there may not be any big adverse affect on cashew contracting for 2018.

To my mind, a significant decline in prices – RCN or kernels – will happen only when there is a big drop in kernel demand.   When and at what level and to what extent this will happen are very very difficult questions to answer !!

Until there is some indication of 2018 demand trend, it would be prudent for both shellers & buyers to be partly covered till first quarter 2018 because market could move sharply depending on what happens in last quarter of 2017.

Regards
Pankaj N. Sampat
SAMSONS TRADERS
Mumbai – India
Phone +91 22 64564300

How to boost cashew exports, by experts

Can  Nigeria grow its cashew export market?

Yes, says the National Cashew Association of Nigeria (NCAN) National Publicity Secretary, Sotonye Anga.

He expects a major jump from last year’s 160,000 metric tonnes of raw cashew export worth $300 million. He however noted that the deficit in transport infrastrcuture may be a problem.

Noting that shipping lines handle fewer agro exports, Anga observed that on-shore container- processing time was low.

Waiting time for cashew exports at the ports, he said, was not improving as commodities stay too long before they are ferried out.

For Nigeria to realise its full export potential, he canvassed more   investment in transport infrastructure Anga said the country also needed more storage facilities at ports.

Group Executive Director (GED) Logistics and Distribution, Dangote  Group, Alhaji Sada Ladan, described the issue as disturbing.

Speaking at a transport forum, organised by the Institute of Directors (IoD) in Lagos, he noted that due to the poor inland logistics and bad roads, it had become expensive for the group to move its  products  across the country.

While the transport sector is functional, Ladan noted that it suffers from low quality, long travelling times and poor reliability, particularly the rail.

The situation isexacerbated by  the conditions on transit roads from the North to the South.

For example, some transporters complain that the road from Mokwa in Niger State has become almost impassable. As a result, drivers are forced to re-route, thereby adding about 40 per cent to the  costs of grains. In some areas, the combination of diversions and rain has seen truck freight rates soar over.

Former Nigerian Airways Managing Director, Mr  Yomi Jones, said the nation’s performance on most logistics indicators, including the quality of transport infrastructure, was worse than that of other countries.

He observed that the patterns in transport and trade logistics generate inefficiencies that lead to loss of much money and man hours and retards growth.

He explained that the transport supply chain system was not providing the value-added services that have become the hallmark of modern logistics, such as multimodal systems, that combine the strengths of various transport modes into one integrated system.

Jones stressed that logistics infrastructure covering road, rail, waterways and air network is the backbone of the economy.

According to him, an ideal situation will be to have adequate infrastructure capacity riding on which the various modes can form a logistics chain for seamless flow of goods and services.

Jones said Nigeria needs good logistics infrastructure to boost competencies and quality of services by sector participants.

Source: http://thenationonlineng.net/

Cashew News July 2017

RCN Situation:

A lot of cargoes are arriving in Vietnam from  Africa, which is causing a big port congestion. All buyers are trying to clear these goods, pay for them but when finance is difficult, trying to sell these cargoes at the moment. This creates pressure on the prices, resulting in declined demand at port of loading in Africa. Business at Vietnamese ports are being reported to be for IVC goods 49 lbs at around UDS 2.080 USD while offers of IVC in Africa cannot sell when being offered at USD 2,050 for 46/200 and 445/200 at USD 1,975.

Also the pressure on the RCN also resulted in lower kernel prices, making it in effect difficult to make money and therefore resulting that the market becomes a standstill situation. Also the lower outturn of contracted goods at 47-48 lbs, giving a lower outturn around 42-44 lbs does not help this situation.

Therefore origins as IVC, Nigeria and especially Guinea Bissau are pricing themselves out of the Vietnamese market. Guinea Bissau basically only can sell to the Indian market, which domestic market is paying better prices for the quality.

The RCN market is very much unclear, a lot more dealers/buyers/manufacturers active in this resulting in a unclear situation, but basically we feel market is under pressure and most kernel buyers are seeing this and stop in showing their needs.

Current RCN prices give the information to the manufacturers to sell W320 around USD 5.15 upto USD 5.25 and the market is not paying this.

Smaller shellers do not want to keep stocks, one of the reasons is that banks are financing the RCN for a shorter period than previous months- it is more a 3-month period against 6-month period prior to today. Also percentage financing for RCN stocks is going compared to previous times.

The market RCN is under pressure, due to lack of finance – too many people playing the market – quality deterioration – quiet kernel market – traditional summer period in USA/EU.

Kernel Market:

The buyer’s market which has been just buying nearby shipments is proving itself at the moment, resulting in not buying market drops.

Most manufacturers/dealers are basically covered until end of August/first half September 2017 shipment, and most only need to buy for periods upto the Holidays (Christmas, etc.) which basically means purchases only need to be done September, October, first half November 2017 shipments.

It looks like that buyers are on the winning side at the moment, seems in any case. Although nothing is sure of course.

Levels have dropped down to USD 4.80 for small shellers/packers to USD 4.90 for medium and USD 5.05 for top packers.

Once top packers realize that the market indeed will not pay the high price levels, there could be developing additional downward pressure on the price levels.

Vietnam:

India:                                  


Source: Cashewinfo

India: In India cashew kernel price remained mostly unchanged during last week. Traders are slowly getting to understand various GST procedures, which have come into force on 1 July 2017. Cashew kernel FOB Tuticorin prices for various grades wholes/pieces were either slightly down or remained unchanged at previous week level.

Vietnam: According to the General Department of Vietnam Customs, 165,000 tonnes of cashew nuts worth about USD 1.62 billion were exported in the first six months of 2017, up 2.3 percent in volume and 27 percent in value from a year earlier.

The Chairman of the Vietnam Cashew Association (Vinacas) Nguyen Duc Thanh said, in first half of 2017, the domestic cashew nut supply was not enough for processing, so the industry had to import 400,000 tonnes of high-quality raw cashew nut from Africa in order to meet the market demand. Vietnam early in 2017 had set a target of 360,000 tonnes of cashew kernel export during this year. US: The US cashew kernel imports in the month of May-2017 totalled 13,401 tonnes as against 11,029 tonnes imported in April-2017. In the first five months of 2017, US has imported 52,836 tonnes of cashew kernel as against 49,275 tonnes imported during the same period in 2016, reporting an increase of 7.23 percent. The US has imported 8,780 tonnes of cashew kernels from India during the first five months of 2017 as against 6,825 imported during the same period in 2016, which is an encouraging sign for the Indian cashew industry. Average annual export of kernels from India to US during the period 2011-2015 was 32,000 tonnes. In 2016 India’s kernel exports to the US was 15,580 tonnes.

Cashew Market commentaries  from Experts

CNSL update Panruti-Tamilnadu
There is very little change in prices. Cashew oil dealers are in dilemma over GST rate. Present rate of shells is INR 6.50 per kg and the cake is below INR 4 per kg. CNSL is fetching INR 22 per kg. The availability is good but cardanol producers are not buying with enthusiasm. The prices are likely to decline soon.
Source: Om Prakash Phadnis, Panruti, India

CNSL update Mangalore-Karnataka
CNSL traded in the region of INR 21.5 and 22 per kg. Cake is fetching around INR 4-4.20 per kg and shells are costing about INR 6.5-6.8 per kg. While the price of Cardanol remains unchanged at INR 46 per kg when compared with previous week. Source: Kanco Venkatesh and Santhosh Silva, Karnataka. It was a relatively quiet week from our point of view. May be a few more sellers of kernels in the market but major suppliers appear to be holding the line. Off take seems to be holding up in the Western markets but perhaps we have not seen the impact of higher prices as yet. Expectations among processors are that buyers still have business for 2017 to do seem unlikely to be fulfilled whilst the market remains quiet but this one needs to be watched closely.
Source: Jim Fitzpatrick

With weak demand from buyers, prices were slightly down during last week. W320 was reportedly traded at USD 4.80 per lb FOB, sold by medium packers for July shipment. Towards the end of the week, offers were seen around USD 4.80/4.85 per lb FOB by reliable packers, but buyers are not interested with the proposed offer. Top and reliable packers’ prices had also reduced during the week, some packers needed to move the goods by offering W320 at USD 4.95 per lb FOB for July and August shipments without being confirmed by buyers. The entire market was quiet as USA and EU the major buying destinations are quiet. From what they are doing are to get old contracts shipped, which are pending for too long. Due to fluctuation of market these years, most of the cheap contracts were not yet shipped by packers and is now good time for packers to ship. There is of course certain demand in the coming time but we do not know
when and at what price it will be. Processors have paid very high price of RCN and with downtrend of the market they would face heavily losses if market continues to remain sluggish. Quantity of imported RCN reaching Vietnam ports is bigger but again most of packers do not have cash to take the goods out, as banks have adjusted their support/loans to packers by granting only 30-35% of the whole lots. Local market was coming down amid weak buying interests. Whole grades prices were reduced, but pieces remain unchanged.
Source: Mr. Kim, Khiem Nguyen Co., Ltd, Vietnam

Guinea Bissau
The season has almost come to an end in Guinea-Bissau. Shipments of course will continue for a couple of months more. It is almost certain when the final figures are in, they will reflect a short-crop in Guinea-Bissau. Local prices have fallen sharply to around 700-900 cfa per kg. But quality has fallen even more sharply and it is only the brave-hearted who are venturing to buy.
The rains have started in earnest.
Source: John Rao, Bijagos Comerciais S.a.r.l.

The prices are stable at the moment while the business activities are very limited during the week. We believe this situation will last for at least two months until near Mid-Autumn day which will be on 4 October, unless some drastic change happens in Vietnamese markets.
Source: Will, Lee, China

Cashew market is a bit dull at the moment. The supply from West Africa is afloat and arriving. Good quantities are available in India and Vietnam for processing, but prices continued to stay firm. The availability in the producing origins is drying up and prices are increasing while quality is coming down. Currently demand is very slow. Most of the buyers are in wait and watch mode. Buyers are not nervous but aware of the ‘risk’ of quick turning around soonest demand will pick up. For the third and fourth quarter still some coverage needs to be done. Best advice is to benefit from good deals on the day to cover either nearby or Q3 & Q4 positions, and meanwhile stay focused on the general market as sentiment may swing the prices all of a sudden and very sharply due to several reasons (processors needing money -price down- or demand for RCN increases -prices up-).
Source: Kees, Global Trading Agency, The Netherlands

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