Cashew Market Update, Vietnam
B1. Raw Cashew Nuts
The demand remains good despite the quality deteriorating in the production areas. Indeed, the rains that started in April in the South are spreading to the other areas, thus impacting the quality of the second production nuts. The latest harvest is coming to an end in some growing areas and producer stocks are dwindling, with the bulk of stores in the hands of local buyers. However, speculative growers who have been holding stocks are beginning to release them for fear that prices will fall, thus increasing supply this week in the markets. There are also some areas where late trees are still forming and ripening fruit.
Buying of RCN is still very effective around the Cote d'Ivore border towns as traders continue to import nuts to augment local stock. The picking of nuts from the second fruiting gradually ends as the season draws to an end. The rains for the major farming season in the cashew production areas are becoming heavy which inadvertently is affecting quality and prices.
Vietnam and Cambodia RCN
Vietnam and Cambodia's crops can be considered to have wrapped up. The rainy weather is directly affecting the output and the quality of the whole crop of both Vietnam and Cambodia. A few processors, realizing the crop failure situation early on, have tried to but as much as possible, expecting to have enough for processing until the end of July. It will only be enough for the rest until the end of May.
Vietnam processor forecast this year production could be reduced since they have missed the opportunities to approach high quality from Africa that has been sold out since phase 1. There is a big concern about the quality of phase 2 that therefore, most processors still hesitate to buy low quality that is too out of conversation cost parity.
Processors are operating very moderately. Most still do not have enough raw material to be able to sell forward shipments. (Namagro)