The export price of local cashew nuts is forecast to rise slightly in the short-term due to an increased demand for cashew from EU countries occurring alongside a growth in Chinese demand as the novel coronavirus (COVID-19) pandemic is gradually brought under control.
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The export price of local cashew nuts is forecast to rise slightly in the short-term due to an increased demand for cashew from EU countries occurring alongside a growth in Chinese demand as the novel coronavirus (COVID-19) pandemic is gradually brought under control.
The nation exported a total of 43,000 tonnes of cashew nuts throughout April with a value of US$281 million.
This contributed to the total volume of exports for the first four months of the year being 137,000 tonnes worth US$948 million, representing a year-on-year increase of 19.4% in volume and 4.2% in value, according to figures released by the Agricultural Product Processing and Market Development Department under the Ministry of Agriculture and Rural Development.
The United States, Netherlands, and China have kept their place as the largest consumers of local cashew, making up 36.8%, 11.9%, and 6.9% of the overall market shares, respectively.
Elsewhere, cashew exports to Saudi Arabia increased sharply with a 2.4-fold increase, while exports to the Chinese market dropped by 46.7%.
The average export price of cashew nuts during the first three months of the year dropped by 12.5% to US$ 7,044 per tonne against the same period from last year.
The import volume of raw cashew in April stood at an estimated 105,000 tonnes with a value of US$132 million, bringing the total import volume and value during the four-month period to 293,000 tonnes and US$413 million, respectively.
This represents an on-year rise of 3.2% in volume but a decline of 13.9% in terms of value.
In terms of the domestic market, the price of raw material in April rose in comparison to the previous month at VND29,000 per kilo in Dak Lak province along with VND46,000 per kilo in Dong Nai province. Meanwhile, the cashew price globally increased by up to US$440, raising the total to between US$6,944 and US$7,275 per tonne.
Within the EU market a number of significant importers are increasing demand in order to stockpile cashew due to concerns relating to the spread of the COVID-19 in Africa.
In the short term, the price of the nation’s cashew nut exports are projected to increase slightly with some customers globally requiring firms to deliver goods imminently due to fears of the transportation of goods being disrupted in addition to the rise in freight rates.
The Vietnam Cashew Association has therefore advised local cashew processing enterprises to not sign long-term contracts due to the price of raw cashew in the world market likely to increase once the COVID-19 epidemic is finally brought under control.
Amid these common difficulties, processing enterprises should take responsibility for purchasing raw cashew nuts domestically in order to develop local material sources, while cashew processing plants have been advised to closely monitor market developments as a means of devising plans suitable for next year.
(Source: VOV)
