Even though the cashew markets, both domestic and international, showed very little activity last week for want of demand, it is likely to witness a revival in the coming weeks as the coverage for the first quarter of 2012 so far has been very much below normal, according to the trade.

Last week, some processors in India and Vietnam sold W320 in the range of $3.75-3.90 a pound (fob) for October-December shipments.

There was some buying interest for first quarter 2012 at around $3.85-3.90 (fob), but, as offers were about 20-25 cents higher, no business had taken place, trade sources in Mumbai said.

Nominal levels for other grades were at $4.20-4.45 a pound for W240, $3.70-3.90 for W450, $3.75-3.90 for SW320, $3.60-3.75 for SW360, $3.20-3.35 for Splits/Butts and $3-3.15 for Pieces. “The wide range of prices is making things extremely difficult,” they said.

Domestic market quiet

The domestic market was very quiet. Wholesalers/ stockists were not buying more as they were busy delivering to retailers.

Indications in many areas are that retail off take for the Diwali festival may not be as strong as normal, due to high prices and competition from other nuts, Mr Pankaj N /Sampat, a Mumbai-based dealer told Business Line .

As the prices have eased in the last few weeks from the peak of July/August, some people expected that off take may revert to normal levels during the ensuing marriage season/ winter (November-January).

After a long sluggishness some activities were reported last week in Vietnam's domestic market (China) due to lower prices.

“It is to be seen whether this continues in the coming weeks also,” he said.

Raw Cashew Nut (RCN) market was quiet as expected and it had reflected on the kernel market.

Indonesia and Tanzania RCN were offerred and traded at around $1,650 a tonne (c&f).

“If kernel market continues to be quiet in November, the interest of shell trade in new RCN buying will be muted,” he said.

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