Cashew kernel trading quiet; prices down marginally .

Kochi, April 11 The cashew kernel market continued to remain quiet even after almost a week-long holidays with a marginal decline in the prices. Prices were down by a few cents e.g., W240 was at around $3.05, W320 around $2.85, W450 around $2.65 (f.o.b).

There was not much selling interest at the lower levels, trading sources said. Splits were at equivalent to $2.60 and LWP equivalent to $2.25 (f.o.b).

Like in the raw cashew nut (RCN) market the waiting game continued in the kernel market also, Mr Pankaj N. Sampat, a Mumbai-based trader told Business Line. “Everybody seems to be content with making small purchases and sales when required. Nobody wants to take large positions. This trend is likely to continue for sometime and will result in the periodic bursts of activity (and spike or dip in prices) that we have seen every few weeks in last several months,” he said.

Demand-Supply balance

Fundamentally, he said, there seems to be a good balance between demand and supply, although some regions may have shortages and kernel shipments in second quarter may be lower.

Due to change in market dynamics, there is increasing emphasis on short term buying.

Consequently, price range is becoming wider and volatility is becoming higher.

Mr Sampat said, “we feel that for the rest of the year market will move in a $2.60-2.90 range. In the lower half of the range, selling interest from origins will be limited to near- bys, unless RCN prices come down dramatically in May/June.”

Source : Business Line