Cashews prices ease slightly as buyers in the EU and the US show limited interest
The Expana Benchmark Prices (EBP) of Vietnamese cashews, whole white, 320 kernels per lb (WW320) FOB Vietnam fell 2 cents/lb during the week of August 1, 2024, to $3.38/lb, steady m-o-m and up 26% q-o-q.
Market activity cooled down in July as the key Northern Hemisphere markets entered the summer holiday period. Despite the weekly decline in prices, the market was steady during the month, supported by relative RCN firmness.
“There is a stretch in the market. Demand is not strong, but sellers do not want to reduce offers as they bought RCN earlier at higher prices,” a Vietnamese broker said. “Vietnamese packers are holding back hoping customers who have not yet covered for Christmas will return to the market in August,” a European trader commented.
A seller in Vietnam tried to clarify further, “RCN traders dropped offers but they are still high compared to the kernel market”. Expana heard some RCN was being offered in the fourth week of July around $1,800-1,885/MT for good quality raw seed from Guinea Bissau (CFR Vietnam) and at similar levels from Senegal.
Despite the reported slowing market conditions, Vietnam continues to export large cashew volumes, with export shipments in June totaling 70,838 tonnes, an increase of 18% y-o-y, according to data from Vianacas. In H1 2024, Vietnam shipped 376,161 tonnes, up 35% y-o-y. After a record export performance last year (645,300 tonnes of cashew kernels exported in 2023), 2024 is shaping up to be another record year for Vietnamese cashew kernel exporters.
WPTC European processing tomato update
The most recent update on European processing tomato from the World Processing Tomato Council (WPTC) was released on 26 July. The harvest has commenced in most Northern Hemisphere countries. However, the recent spell of high temperatures across several regions could potentially affect the yields, though the full impact is not yet clear.
France started processing on 18 July at a plant in the southeast, whilst other plants started processing at the end of July. Harvesting in the southwest is expected to begin in mid-August. Despite initial concerns over mildew during spring, current yields appear promising. However, the presence of moths could impact the later crops. The forecast remains unchanged between 170,000 and 180,000 tonnes.
In Greece, the last processing plant began operations on 24 July. While the forecast remains stable at 500,000 tonnes, the prolonged high temperatures, nearing 40°C, along with recent rain and hail, could potentially affect the crops.
Northern Italy has seen a few factories start processing special tomato varieties like datterini and cherry tomatoes. However, standard-round tomatoes from fields that experienced excessive rainfall are expected to have low yields. Significant volumes from early crops are expected by early August. In Southern Italy, most factories are now operational, with round varieties being processed in the Caserta area. Puglia has commenced processing long varieties. Water availability at the Occhito dam continues to be a major concern for the Foggia region.
Portugal enjoyed favorable weather conditions last week, but recent temperatures spiked to 41-42°C, potentially causing flower abortion in late-season crops. Small volumes are currently being processed, with all factories expected to be operational between by August 5th . The processing tomato production forecast is at 1.5 million tonnes. In Spain, the first factory in Andalusia has started processing. Despite cooler weather in June and early July, recent high temperatures of 42-43°C have accelerated crop growth. Extremadura is experiencing similar conditions, with most factories starting in early August. The high temperatures and dry conditions are fostering pest development and may cause flower abortion in late tomatoes. A production peak is anticipated at the end of August due to late transplanting, which may challenge factory capacity. The overall forecast stands at 2.8 million tonnes.
Turkey’s harvest in the south is fully underway, with factories working at full capacity. Factories in Bursa are expected to commence operations in the first week of August. Despite experiencing particularly hot and humid weather in July, the crops remain unaffected and in good condition, with no reports of pests or diseases. Turkey’s production forecast remains unchanged y-o-y at 2.7 million tonnes for 2024.
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