Cashew prices firm heading into the last quarter of 2024
Cashews prices have firmed recently with the Expana Benchmark Prices for WW320 grade cashews (BRC shippers, FOB Vietnam) up 12 cents/lb in the two weeks to Oct. 3, at $3.40/lb, an increase of 3% m-o-m and 38% y-o-y. Prices rose because of tightening availability in Vietnam and the high raw cashew nut (RCN) prices.
RCN stocks in Vietnam are expected to tighten heading into the last quarter of the year, with the RCN imports into Vietnam falling y-o-y for the fourth consecutive month, down 42% y-o-y in August. In total, 1.92m tonnes of RCN was imported by Vietnam between January and August, down 10% y-o-y according to data from Vinacas. It must be noted that this figure is an increase of 20% in the same period in 2022. Imports of borma cashews (semi-processed cashews with skin on) into Vietnam reached 92,400 tonnes between January and August 2024, up 33% y-o-y, according to Vinacas.
Sellers in Vietnam continued to be cautious offering on the forwards, Expana heard throughout September. “We have orders until the end of the year and other big packers are in a similar situation. RCN prices are high, Tanzania will come to the market in October at a high price and crops in West Africa were short. We are temporarily withdrawing offers for Q1 2025,” a large Vietnamese processor said. “Good sellers keep prices firm, they understand they are well placed,” an Indian trader noted in the first half of September. “Sellers have been hesitant to offer into 2025. I think they are concerned they might not be able to fulfill commitments,” a European roaster said.
Demand from Europe continued to be muted throughout September, most market players commented. Expana heard of some business being done in the Middle East as the industry there replenishes stocks ahead of the winter season. Some market players raised concerns over the escalating conflict in the Middle East and its adverse effect on the cashew demand.
Kernel imports from Vietnam into the EU totalled 12,888 tonnes in July 2024, an increase of 11% y-o-y, 1,740 tonnes more compared to June, according to Eurostat data. In the first seven months of 2024, the EU imported 69,070 tonnes of Vietnam-processed cashews, up 7% y-o-y and up 4% on the five-year average.
In the US, imports of Vietnam-processed cashew kernels totaled 15,705 tonnes in July 2024, an increase of 14% y-o-y, 1,360 tonnes more than imported in June, according to USDA FAS data (HS code 0801320000). In the first seven months of 2024, the US imported from Vietnam 85,000 tonnes of cashew kernels, up 22% y-o-y and up 3% on the five-year average.
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