<p></p><p>Export of cashew kernels during April-June declined marginally on slack demand attributed to financial constraints and prices being comparatively higher than last year. Total shipments during the first three months of the current fiscal were 24,405 tons valued at ` 1,005.55 crore against 24,959 tons valued at ` 938.21 crore in the corresponding period a year ago, according to sources in the Cashew Export Promotion Council of India. </p> <p>The average unit value during the first three months was ` 412.03 a kg (` 375.90). Imports of raw cashew nut declined during the period under review to 1,94,630 tons valued at ` 1,170.52 crore from 1,95,749 tons valued at ` 1,275.48 crore. The unit value declined to ` 60.14 a kg from ` 65.12 last year. </p><p><b>Protracted dullness </b></p><p>Meanwhile, the dullness in the cashew market world over continued last week also, according to market sources. “For the first time we are experiencing such a protracted quietness in the market”, Pankaj N. Sampat, a Mumbai-based dealer, told Business Line. Activities were very limited with some stray trades taking place in the main markets – the US and the EU – he said. </p> <p>Prices remained by and large unchanged at the last week's levels. Offers ranged from $3.60-3.80 for W240, from $3.20-3.40 for W320, from $3.05-3.20 for W450/SW320, from $2.10-2.30 for splits and butts and from $1.70-1.85 for pieces. </p><p><b>Outlook </b> </p><p>The prevailing unfavourable economic conditions coupled with lower offtake in the last few quarters and lack of retailer promotions could be attributed to the continued sluggishness, he said. Despite the lack of significant activity for a long period, market has been relatively stable in July/August. If activity does not pick up in September/October, prices may be drifting lower and this might mean further reduction in processing, he said. In the next 2 months, contracting for 2013 deliveries will definitely be made but it is not clear what will be the volumes and delivery periods. If the interest is for longer spreads and / or larger volumes than what was contracted in the last quarter of 2011, which is possible since the prices are much lower – but not certain due to the lack of confidence, “we may see prices moving up in the next few weeks and stabilising within a narrow higher range for a longer period. If the volumes traded are small and for shorter periods, prices will probably remain in the current range for the next few weeks adding to the potential for volatility in the next few quarters”, Pankaj said. </p> <p><b>Rcn market </b> </p><p>On the Raw Cashew Nut (RCN) side, kernel yields from all West African RCN have been much lower than normal. There are stocks in origin as well as India and to some extent in Vietnam but shellers are not keen to buy as kernel activity is slow. There are reports of concerns about the upcoming Brazil crop (third year in a row), he said. </p> <p>He said the outlook is continued to be very hazy. Market could move either way. Considering all aspects, the trade said it still believes that “even if activity continues to be slow, the downside is limited due to lower processing and higher costs. On the other hand, if the activity picks up, there is potential for a smart rise, but not a big jump”.<br></p><p></p><br><br><br>