Cashew kernel market dull on low demand .

Kochi, April 18 Cashew kernel market continued to remain quiet during the week on slack demand and limited activities. Only small volumes were traded to several directions without effecting any change in the prices, trading sources said.

W240 was traded between $3 and 3.05, W320 between $2.80 and 2.85 and W450 between $2.60 and 2.65 (f.o.b). Some small processors reported to have sold few cents lower while Brazil is said to have sold few cents higher.

The two major kernel markets, US and the European Union, have been buying small quantities regularly for the past few months to meet their immediate requirements which has kept the market within a range, with periodic spikes and dips, they said.

“Due to the increasing demand from other markets including the domestic market (and uncertainty of market trend), processors are also finding it better to sell smaller quantities for nearbys,” Mr Pankaj N. Sampat, a Mumbai-based trader, told Business Line.

High prices

Indian crop, they said, can be expected to be average although there are concerns about shortages in some areas. Prices are very high as processors in the growing areas catering to domestic market can afford to pay higher prices due to logistic, tax, processing cost advantages. Vietnam RCN prices are steady but yields are lower in recent arrivals.

Although the market could drift few cents lower in the next few weeks if RCN prices ease when arrivals pick up, “we continue to feel that market will tend to move to the higher end of the range after 2-3 months - that will be the high consumption period for nuts in all markets,” Mr Sampat said.

Source : Business Line