<p>The domestic cashew market has been quiet over the past fortnight. Sales for festival season were reasonable.</p> <p>“We should see some activity by middle of November for inventory replenishment and the beginning of the marriage season,” said Pankaj Sampath, a Mumbai-based dealer. The range of cashew prices last week was W240 from $3.70-3.85, W320 $3.20-3.30, W450 and SW320 $2.95-3.05, splits $2.20-2.30 and pieces $1.45-1.55 for an lb (f.o.b).</p> <p>The cashew market has been ruling steady since last month with W320 trading in the $3.15-3.30 f.o.b range. By middle of October, most of the lower offers for W240 and W320 were taken out. During September and October, good volume was traded at the lower and middle of the range for shipments up to December, Sampath told Business Line. Some business was done at higher end of the range for shipments up to March-April 2014 and scattered business for later positions as well.</p> <h1><strong>HIGH LEVELS</strong></h1> <p>RCN market started moving up slowly from middle of September and seems to have moved to unrealistically high levels in the last two weeks. About 12,000 tons have been sold in the first two Tanzania auctions at prices which are about 10 per cent higher than present kernel market. Since there is not much kernel demand at higher levels, it is difficult to understand such high RCN prices.</p> <p>During the last 12 months, kernel market has been moving in $3.20-3.40 range (except for the recent short lived drop to 3.05-3.20 range). Whenever the market has come close to the bottom of the range, selling interest has been limited to few processors for limited quantities for nearbys.The general feeling is that the current price range is comfortable, especially because prices of almost all other nuts are higher. This should mean more interest and steady demand for cashews. If the trend of regular buying for small tranches for short spreads continues, there may not be any big move in prices. But if buyers need to buy larger volumes for longer spreads, processors will not be able to take on commitments unless they get a reasonable premium because prices are already close to low end of the range of last four years.</p> <p>If the current trend continues and if the kernel market does not move beyond the $3.40 level, processors will find it difficult to buy raw cashew from Tanzania at the current levels which are about 10 per cent higher than present kernel prices. They will probably limit their buying to whatever they need to keep factories running till the large Northern crops start in April. But if they are able to sell kernels in the next few weeks at higher level, it is quite possible that raw cashew buying will continue and 2014 season may begin with high prices.</p> <p> </p>