The prices of cashew kernels are stable. Prompt until July shipment prices are firmer than August and later shipments. Uncommitted kernel inventory for prompt and nearby shipments are limited. Stocks of RCN are available in Burkina Faso, Ivory Coast, Benin and Tanzania (2018 crop) but general quality is going down a bit. Also Guinea Bissau is having sufficient RCN stocks but prices are going up as the Indian buyers are pushing prices up for this better quality material.
The Indian processors are looking for immediate shipments to be ready for the expected local kernel price increases due to growing kernel demand during August and September. A number of EU and USA buyers are covered until 3rd quarter of 2019 (but we also see buyers covering their shorts and filling up the gaps) and interested to take additional cover for the 4th quarter 2019 and 1st quarter 2020 as most of them do not expect prices to come down further as all information is available on the crops.
A little concern is that the position of the RCN stocks (mainly still in West Africa) might cause (lack of) supply issues later in the season. When it is not shipped in time, shortages of RCN in the processing countries of India and Vietnam might cause price increases as the season will start with July and August shipments to fill in Thanksgiving and Christmas consumer demand. The current kernel prices are having a positive impact on consumer demand and we expect consumption to grow again.
Source: Global Trading & Agency
Source: Global Trading & Agency
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