Cashew export prices suffer drop to low levels

Cashew export prices experienced a downward trajectory during the first 20 days of June, hovering between US$2.4 and US$3.35 per 0.45 kilo, according to figures released by the Import and Export Department under the Ministry of Industry and Trade.

Cashew export prices have suffered drop to low levels over recent monthsThe Vietnam Cashew Association (Vinacas) has advised factories to consider implementing a minimum price of US$3 per 0.45 kilo for grade W320 cashew nuts when signing export contracts for processed cashew in the future.

The association recommended that Vietnamese processors limit sales to take advantage of the possibility of escalating prices in case cashew is in short supply in the Asian market.

In fact, cashew processing in small factories nationwide has decreased significantly in recent times. In addition, the supply of raw cashew nuts remains limited after the Ivory Coast increased purchases for its reserves.

The Vinacas therefore suggested that cashew processing plants remain cautious about negotiating export contracts with partners in an effort to minimise risks. Additionally, local businesses should not sell cashew nuts at cheap prices, but wait to offer higher prices.

According to the General Department of Vietnam Customs, cashew exports throughout the five-month period increased by 16.9% to US$1.23 billion in comparison to the same period last year.

With the novel coronavirus (COVID-19) epidemic causing a decline in overall cashew nut consumption in major export markets such as the United States and the EU, there has been positive trends occurring in the nations' supermarkets.

Amid complicated developments of the COVID-19 epidemic, the demand for cashew nuts and export prices are anticipated to increase sharply in the near future, according to experts.