Cashew Nut Market Update February 2022 Week 8
As we've reported in our previous market reports, there hasn't been much to report from the cashew market lately. For 2022, there hasn't been much interest in buying for the next few months. Only serious deals have been made for delivery after July 2022.
Currently, shippers are looking to sell shipments for March and April. They're trying to get contracts for buying raw cashew nuts to get processing and shipping going.
In the end, it all comes down to market supply and demand. The supply is increasing day by day, but the demand remains non-existent.
The market prices are lowering with W320s at US$2.75 per lb from good BRC Vietnamese shippers.
Overall Weather Conditions
Vietnam's Binh Phuoc province hasn't had great weather conditions lately, which is worrying growers in regards to the crop outcome. Similar conditions have been reported in Cambodia, where continuous rains in the first half of February are affecting both the quality and quantity of the new crop. We will have to see how the season progresses to make any further comments.
Market Conditions to Note
Fortunately, it has been reported that ocean freight rates have gotten friendlier, but there is still uncertainty over how long this will last. Inflation rates in Europe and the USA continue to increase and are, by extension, driving interest rates higher which is affecting how consumers spend their money.
Furthermore, it is worth noting that there is still a large quantity of the old RCN stock available in Vietnam, and large quantities remain en route to Vietnam from Tanzania.
Even though there's a large chunk of the previous crop available, new crops are emerging from Vietnam, Cambodia, India and West Africa, but there is no demand yet.
The market hit bottom last year when W320s were being traded at US$ 2.45 per lb, after which prices quickly went to US$ 2.75 and higher later that year.
It is expected that the market will reach a point where stakeholders will start supporting the market and help stabilize prices. We will let you know as the situation progresses.
