<p></p><p>Demand for cashew kernels of different grades is likely to surge over the next few weeks in the domestic market owing to festivals. Globally, cashew markets witnessed limited activities in the first fortnight of this month with offers and trades in the range of $3.60 to $3.75 for W240; $3.20 to $3.40 for W320, $3.10 to $3.20 for W450, $3.10 to $3.15 for SW320, $2.95 to $3.00 for SW360, $2.70 to $2.75 for SSW, $2.65 to $2.75 for butts, $2.55 to $2.65 for splits, $2.10 to $2.20 for large pices all per lb (f.o.b).</p> <p>In the domestic market, there has been regular steady offtake every month. There have been periodic spurts in demand for brokens for short periods, while domestic prices for splits and pieces have been close to the international price for wholes, according to market sources. For the ensuing Onam festival, demand for splits is expected to pick up while for Diwali, demand for brokens and premium grade kernels would witness an upsurge in the coming days, according to KA Retheesh, Managing Director, Kerala Cashew Development Corporation which processes and markets cashew and cashew products throughout the country. </p><p>He said the consumer packs of W-240 grade are sold at <a target="_blank" rel="nofollow">`</a>700 a kg, while higher grade W180 is marketed at `900. There is good demand for the latter in metros. Its demand is also expected to move up in the winter months, he told BusinessLine. </p><p><b>Global market </b></p><p>In the overseas markets, there was a fair amount of activity in W320 during June and July with the US and Europe. Depending on the processor and shipment period, trades have been in the range of $3.20 - $ 3.40 per lb (fob), Pankaj N Sampath, a Mumbai-based dealer said. Some business has been done few cents above the range as well for the fourth quarter of 2014 and early 2015 shipments, he said.</p> <p>Except for small shortages in some areas, 2014 raw cashew crop in the northern hemisphere has been reasonably good and most of it has been sold to processors but some quantities are still with traders. </p><p>During the season, raw cashew prices have gone up by $150-250 a ton depending on the origin and quality. On an average, raw cashew prices in 2014 have been 15-20 per cent higher than in 2013, despite the fact that kernel prices have been in the same range as of last year, with some premium for forwards. Prices for broken grades have moved up but since the percentage of brokens in total yield is low, the increased realisation does not compensate the higher raw cashew price. Higher RCN price means that shellers’ margins are probably under pressure. Keeping in mind that southern hemisphere contributes less than 25 per cent of the world crop, many shellers may decide to hold on to part of their stocks, either as kernels or as raw cashew for higher prices during the last quarter, Sampath said. </p><p>Expectations</p> <p>Since the overall availability is comfortable, there may not be a big jump in the market. But, there is an expectation that prices could move up a bit during September or October when the US/EU buyers cover significant part of their requirements for the first half of the next year. </p><p>It will be reasonable to expect more interest in cashews because prices have been in the same narrow range for more than two years, giving room for some increase beyond the current range as prices for other nuts are higher than last year’s, sources claimed. </p><p> </p><br><p></p><br>