Market Update, Cashew

Date: 7th June 2022 Category: Latest News
Market Update, Cashew

Kernel prices remain relatively stable with existing but moderate demand in the world market. West African raw cashew for export in July 2022 continues to depreciate slightly. The Indian demand remains good as the market of the first world consumer country seems good but the Vietnamese demand for raw cashew nuts continues to slow down in a context of still very stable cashew kernel prices, which makes the processing raw cashew nuts in Vietnam is unprofitable in the current price context.

The analyst's point of view

In May, Côte d'Ivoire exported 135,000 Metric tons of raw cashew nuts and 3200 MT of cashew kernels. This is more than in May 2021 for both indicators. Cashew kernel exports are double what they were last year, and raw cashew exports are 30,000 Metric Tons above the previous year.

Over the first five months of the year, exports of raw cashew nuts are up by 22,000 MT and those of cashew kernels by almost 3,000 MT.

A big news of this month is the significant return of Brazil to the West African raw cashew market. After importing raw nuts between 2011 and 2019, Brazilian processors have refocused on their domestic production since 2020. In 2022, they began placing orders again in Côte d'Ivoire (and perhaps elsewhere in the sub region), which is good news for West Africa, diversifying its outlets.

The other particularity of this campaign is the importance of exports of raw cashew nuts to India. Already noted in previous months, this trend is maintained in May with exports to India extremely important compared to previous campaigns.

On the processing side, it should be noted that exports of unpeeled kernels (Borma kernels) to Vietnam continue to decline in favour of exports of white kernels to consumer countries. A significant diversification of its outlets also marks the growth of the Ivorian industry. Since the beginning of the year, the third world processor has exported to no less

than 20 consumer countries on all continents.

On the international market, following last week, raw cashew nut prices remain slightly down in the export market, a the decline that is just beginning to be reflected in local markets.