Cashew prices stabilized in the second half of October after the market climbed by several cents in the first half of the month
The Expana Benchmark Prices (EBP) of Vietnamese cashews, whole white, 320 kernels per lb (WW320) FOB Vietnam were assessed at $3.43/lb in the week of October 31, 2024, increasing by 2%, or 8 cents/lb, from the last week of September 2024.
Price indications for WW320 grade cashews, (BRC certified shippers, FOB Vietnam) rose in the first half of October, by about 10 cents per lb, supported by strong purchasing activities in the local Vietnamese cashew market, coupled with returning global demand and the high raw cashew nut (RCN) prices.
Prices have since stabilized, with indications on the WW320 grade cashews heard by Expana between $3.35/lb and $3.50/lb in the week of Oct. 31, depending on the size of the processor and the quality of the material. Top BRC SMETA factories offer productsabove these levels. Indications on WW240 cashew kernels were heard in the last week of October between $3.65/lb and $3.80/lb. Larger-sized kernels are more readily available in Vietnam.
Market players have been reporting good buying interest for prompt shipments, with some demand also coming for shipments into H1 2025, some traders and brokers reported, and as expected for this time of the year.
Nonetheless, some market players noted slowing demand in the second half of October. “Demand has been slow. We have seen some interest into Q1 and Q2 2025 but buyers are not pushing to get the contracts done,” an Asia-based trader said in the last week of October and continued, ”Big sellers in Vietnam have tried supporting the RCN market but even these companies do not see much demand coming into the kernel presently.” “We saw some activity in the first half of October, but the market is quieter now. Buyers feel there is no reason for the market to go much higher. They will come back to buy in November and December to get contracts done for H1 2025”, an Asia-based broker noted in the third week of October.
On the demand side, Vietnam exported just slightly below 60,000 tonnes of cashew kernels during September, a decline of about 10,900 tonnes compared to August 2024, but an increase of 10% compared to September 2023. The year-to-date exports (Jan-Sep) continue to run 28% ahead of the last year, reaching 581,130 tonnes by the end of September, according to data from Vinacas.
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