Cashew Market Update November 2021

New crops from India, Vietnam, and Cambodia are about to become available soon. Crop auctions have been going on in Tanzania for a month now, but it is expected that due to the freight rates rising again, kernel prices will drop once more.

Market Updates

If you have looked at our previous market reports from the past week, you will notice that the nut and dried fruit industry, in general, seems to be very saturated. Buyers are hard to come by, and there have been no long-term commitments for shipping. 

This is causing prices, especially in the cashew nut market, to drop. W320 is currently priced at USD 3 per lb, and in some places, this is even lower depending on who you talk to.

Vietnam has already imported 174,701 mt in October, bringing the total number of inventories to 2,868,121 mt. But that's not the end. There is a rumor that about 500,000 mt of these imported RCN are stored in warehouses in Vietnam and are in the hands of financially strong companies. 

It is unclear what this means for the future, but right now, smaller packers are not interested in buying RCN from suppliers. Generally, the market is focused on the newer crop right now.

What to Expect from the Upcoming Harvests?

Easier predictions indicated that Tanzania would have around 280,000 mt, but the harvest ended up being similar to about 230,000 mt, the same as last year's.

India will begin harvesting its crop as well in January 2022, and it is expected to be at 650,000 mt. Similarly, Vietnam is expected to have a new crop of 450,000 mt in February/March 2022. Cambodia will also start to harvest their new crop, at a prediction of 1 million tons.

Basically, the numbers show that there will be an abundant supply of nuts available soon in the next four months. It looks like the harvest is going well with no indication of any troubles with crops.