The Tanzania season started and early October was with a high short offer from around $ 1,650 CNF HCM for a 53 lbs 2 days before the first auction. This price is offered by international raw cashew traders to anticipate the lack of stock of Vietnamese factories after most of Ivory Coast products are purchased entirely from GIE (Ivory Coast Cashew Exporters' Union) by a large corporation in Vietnam..
Besides, in the domestic market of Vietnam also became hot with the sharp increase in the price of CK and domestic RCN as well as RCN in bonded warehouses. The reason is that the manufacturers have come to fullfil the export contracts and the the information that Ivory Coast RCN has been almost bought out, so Processor have to try to buy raw materials and cashew kernel enough space for upcoming contracts. However, the sharp increase in the price of RCN and domestic CK only led to a slight increase in international kernel prices in the short term and hardly any change. As explained by some major cashew exporters, the reason why international kernel prices did not increase is that kernel buyers took advantage of buying and building inventory at a time when kernel prices were low (2.5 - 2.6 usd / lbs) so currently they just wait for the delivery of the goods according to the contract signed.
The prolonged silence of international cashew customers has caused Vietnamese exporters to falter in buying high-priced Tanzanian cashew nuts, leading to the indifference of the Vietnamese market to Tanzania cashew nuts. Foreseeing the situation, international RCN traders and Tanzania RCN exporters also conducted lower prices in auctions from 2600 shillings down to 2400,2350 shillings (the peak is The Government of Tanzania canceled the auction results on October 22 because the winning price was too low) Referring to the Offering price for Vietnamese factories from $ 1,650 CNF HCM gradually decreasing until October 26, the price being offered is $ 1,450 - $ 1,480 CNF HCM for recovery of 52 / 53lbs
Up to now, more than 50,000 tons of cashew have been put into the auction warehouse and sold, RCN purchased in the first auctions are currently being shipped on board and the first shipments are expected to arrive in Vietnam at the end of November.
STEVE - ASIAFRI COMMODITY NEWS
