Currently, some customers around the world require factories to deliver goods as soon as possible due to concerns that shipping goods around the globe may be difficult. Vinacas recommends that processing plants be calm, not sell off.
Cashew prices continue to fall
Although COVID-19 epidemic has been controlled in China, it has spread to many countries and territories around the world, especially in the US and Europe - Vietnam's traditional cashew export markets. .
In the US and the EU, restricting travel by people has led to an increase in the need for essential food reserves. While cashews are a by-product, consumers will prioritize other important foods.
The price of processed cashew nuts decreased due to the decrease in raw material prices and the process of transporting processed cashew nuts was also difficult.
Tightening control, increasing quarantine at the border and closing some border gates cause cashew imports from the Cambodian market to Vietnam slowly.
The prices of raw cashew nuts of Cambodia and Vietnam are low. The price of fresh cashews in Cambodia is about VND 18,000 - 20,000 / kg, recovering 27 - 27.5% (equivalent to 170-180 seeds / kg).
In Vietnam, cashew crop this year has high yield, good quality, but the price is low, ranging from 22,500 - 23,000 VND / kg, recovery rate 27.5 - 28% (equivalent to 180 - 185 grains / kg).
Processed cashew nut prices plummeted amid gloomy trading. Currently, some large factories in Vietnam offer W320 cashew nuts from 2.95 to 3.05 USD / lb; cashew nuts type W240 from 3.30 - 3.40 USD / lb.
Meanwhile, the selling price of processed cashew nuts of small factories delivered for period from April to October 2020 is lower. Selling price of cashew type W320 from 2.75 - 2.80 USD / lb; cashew nuts type W240 from 3.10 - 3.15 USD / lb.
Do not sell off
Currently, some customers in the world require factories to deliver goods as soon as possible due to fears that the transportation of goods around the world may be in difficulty, freight rates rise.
However, the Vietnam Cashew Association (Vinacas) recommends that processing plants be calm and not sell off. At the same time, processing plants should import raw cashew nuts slowly when they see a suitable price.
Domestic businesses should be cautious when buying raw cashew nuts from Africa, paying attention to product quality checks.
In the context of common difficulties, processing enterprises should purchase raw cashew nuts in the country in order to contribute to maintaining and developing the local raw material area.
Vietnam cashew processing plants need to closely monitor market developments, and should also have a preparation plan for 2021.
In 2020, the Vietnamese cashew industry aims to export $ 4 billion, but due to the impact of the COVID-19 epidemic causing the price of cashew nut exports to fall, Vietnam's cashew industry may have to adjust its export plan to 3 billion USD.
The Ministry of Agriculture and Rural Development forecasts that Vietnam's cashew nut export price will increase slightly in the short term, as Western countries increase the demand for cashew reserves, besides that China is gradually recovering its economy. The COVID-19 pandemic is well controlled.
H. Mi (by Economy & Consumption)
Source: Vietnam Biz
