Cashew kernel exports prosper when the US and China increase demand

VCN - It is forecasted that Vietnam's cashew nuts exports will continue to increase, because major importing countries such as the US, India, EU and China will increase their imports to meet demand ahead ofthe holidays in the last months of the year.
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Illustration. Source: Internet

According to the latest news from the Department of Agricultural Product Processing and Market Development (Ministry of Agriculture and Rural Development), the volume of cashew exports in the first nine months of 2020 reached 363,000 tons and US$2.3 billion, up 10.6% in volume, but down 4% in value compared to the same period in 2019.

The United States, the Netherlands and China remained the three largest cashew import markets of Vietnam in the first eight months of 2020, accounting for 34%, 13.3% and 11.4% of the total value of cashew nuts exports,respectively. The average export price of cashew nuts in the first eight months of 2020 reached US$6,392perton, down 13.1% over the same period in 2019.

The Department of Agro-Processing and Market Development said the current demand for raw cashew is still very high, mainly coming from cutting kilns and small factories. Big factoriescannot balance the cashew price because the price is too high, so they reduce their processing capacity to wait for the price of raw cashew to decrease.

For the cashew market, in the last two weeks of September 2020, transactions were more active. Cashew kernel prices are fluctuating at US$6,128-7,054 per ton for the code W320 FOB.

Chinese demand is also increasing but the offering is less due to the importers having strict requirements on quality, while the sources of goods meet their standards in Vietnam.

With the domestic cashew market, the price has increased continuously. The main reason is that some companies lack goods to implement signed contracts so they need to buy domestic cashew nuts.

There arealso reportsthat some trading companies are gathering cashew nuts to push up prices to sell raw cashew. Cashew kernel prices in the market are increasing in a short period due to the shortage of local raw cashew in Vietnam.

"However, the supply of raw cashew nuts in the world is still very high,so it is possible that in the next 1-2 months the kernel price mayreverse. Therefore, cashew processing factories should be cautious about this situation," Mr. Nguyen QuocToan, Director of Agricultural Product Processing and Market Development Department said.

It is forecasted that Vietnam's cashew exports will continue to increase, because in the last months of the year, major importing countries such as the US, India, EU and China will increase their imports to meet the demand ofholiday occasions.

The Department of Agricultural Product Processing and Market Development focuses on analyzing the Indian market in depth. Specifically, on the world market, the Indian food industry currently has a great demand for cashew and fragrant cashews.

Premium Jumbo Double Broken Cashew (W180, W210 and W240) is trading at 650Rsperkg inGoa-Mangalore. King size premium thin cashew nut (Jumbo-K) is being sold at 610Rsperkg inGoa-Mangalore.

This year, the Diwali festival will be held in mid-November, so purchases for the New Year will begin immediately after the Diwali festival. Cashew market experts believe that is a good time for this commodity.

Cashew kernel price is forecasted to increase slightly according to the law of supply-demand in the market because many small and medium-sized cashew processing establishments in both Vietnam and India have reduced capacity, stopped working, causingthe supply to the market to decrease.

Up to now, the Vietnam Cashew Association (Vinacas) has set a target of 450,000 tons of cashew nuts export with an export value of US$3.2 billion (the first six months of the year reached 51.65 % of the plan). Meanwhile, the number targeted by the cashew industry isUS$4 billion.

By ThanhNguyen/ Phuong Thao

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