Raw cashew nut prices have surged since September-end despite the kernel market being quite and steady.

At the same time, the trade expects the kernel market to rule firm early next year.

West African raw cashew, being traded at $750-900 a tonne during September-October, has increased to $950-1,150 due to strong demand from small and medium processors in Vietnam for spot cargo.

Tanzania raw cashew, which started trading at $1,250 before auctions, surged to $1,400-1,425.

These are at least 10 per cent higher than current kernel prices, Pankaj N. Sampat, a Mumbai based dealer told Business Line .

After touching a low of $3.10-3.20 a lb (f.o.b.) in the first half of October, price for W320 has moved up to $3.30 during November.

Last week, the offers were W240: $3.75-3.90; W320: $3.30-3.45; W450: $3.00-3.15; SW320: $3.00-3.10; SW360: $2.80-2.90; Butts: $2.50-2.55; Splits: $2.20-2.35 and Pieces: $1.50-1.60.

Another trigger for higher kernel prices in early 2014 would be buyers in traditional markets coming in to buy in Jan/Feb for first half shipments to replenish their positions on account of good sales in the last quarter of 2013.

As availability is expected to be low, they may have to pay higher prices.

If demand in the first quarter is slow, then markets, both RCN and kernels, will continue sailing in reasonably calm waters.

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