The Hindu Business Line : Cashew kernel prices firm in global market

“Levels traded up to 3.00 for W240, 2.80 for W320 and 2.45 for W450. Indian domestic market was quiet but undertone is steady to firm,” Mumbai-based dealers said.

Most of the business in the last two-three weeks has been for November/December shipments but some was for January/February as well. The US was most active but some business was done with other markets also, Mr Pankaj N. Sampat, a dealer in Mumbai, told Business Line.

Overall volumes were small due to limited offers, “but it is quite possible that more offers would meet with some resistance as buying interest would also be limited to immediate needs and some short covering as safeguard against possible price increases in coming weeks,” he said. Results of the first auctions in Tanzania for raw cashew nuts (RCN) were announced at the end of the week — business has been done at very high levels (approx $1,150 c&f). As usual, the Tanzania RCN prices are at wide disparity from kernel prices but it is to be seen whether the prices can be sustained.

According to statistics, the US imports have increased in the last two-three months to make up for the first half decline, but total exports from the two main origins continued to decline which indicates that inventories in other markets are low, he said.

According to him activity in January-February 2010 will have more than usual impact on market trend for most of the year. “ If the buying interest in January/February is slow, market could lose steam and drift lower but if there is need to buy for first half shipments, firmness will continue,” he said.

However, “all segments of the cashew trade are in for difficult but interesting time for the next few months — firmness now and the potential for volatility in early 2010 which will determine trend for mid 2010,” he added.

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