The deal signed to purchase 150,000 tons of raw cashew nuts between T&T Group and the Ivory Coast Cashew Exporters Union GIE-GEPPA has had a strong effect on the prices of domestic cashew nuts in Vietnam.
The price of raw cashew has jumped to 30 - 50 usd / ton compared with before. The domestic cashew kernel also increased about 0.1 - 0.3 usd / lbs. The detail of price as below
Raw cashew nut:
ORIGIN | TYPE | PRICE USD/ MT |
IVC/GHANA 48LBS | BONDED WH | 1,100 – 1,120 |
IVC/GHANA 46LBS | CNF | 980 – 1,000 |
BISSAU 53LBS | CNF | 1,250 -1,280 |
NIGERIA 48 LBS | BONDED WH | 980 – 1,000 |
Cashew Kernel (FOB HCM)
GRADE | TOP PACKERS ($/LB) | MEDIUM PACKER ($/LB) |
W240 | 3,2 – 3,4 | 3,0 – 3,2 |
W320 | 2,8 – 3,0 | 2,6 – 2,8 |
W450 | 2,5 – 2,7 | 2,3 – 2,5 |
WS | 1,6 – 1,8 | 1,4 – 1,6 |
LP | 1,0 – 1,2 | 0,8 – 1,0 |
Many factories used to be hesitant to buy raw cashew nuts, now they are looking to buy more RCN, especially high quality RCN in bonded warehouses. The main reason that factories prefer to buy from bonded warehouse than Afload cargo is due to the covid epidemic it is almost impossible for factories to send staffs to Africa for inspection. Purchasing in bonded warehouse and pre-quality assessed will help them avoid receiving bad, wet cargo from suppliers. This makes factories more secure and accept higher prices than buying at sea cargo
The fact that major exporters collect domestic cashew nuts to fullfill their signed contracts in the context of domestic scarcity because many small factories closed due to losses and epidemic causing the domestic cashew market to be very active and leading to a paradox that the domestic price was higher than the export price at the same time.
Vietnam's cashew industry was heavily damaged in 2018 due to the heavy drop in prices and oversupply then recovered slightly in 2019 But in the first 7 months of 2020, the Vietnamese cashew industry continued to face many major events like Epidemic, blockade, weak economy ... with the sudden rise in prices in the first 7 months of this year, what will continue to happen in the last 5 months of 2020?
STEVE - ASIAFRI COMMODITY NEWS
