<p></p><p> The cashew market saw very little business last week. Most processors were either not offering or were asking 10-15 cents higher per pound. The range of offers widened — for W240, from $4.10 to $4.20; W320,$3.65 to $3.85; W450, $3.50 to $3.65; SW320, $3.55 to $3.70; splits and butts, at around $2.70; and pieces, at around $2.40 per pound (fob).However, prices in the domestic market were steady at higher levels, with good buying interest especially for broken grades. </p> <h2>RCN market</h2> <p>The raw cashew nut (RCN) market was also quiet. With the kernel market remaining dull over the last two weeks and continuing logistic problems in Africa, shellers were not keen to make additional purchases.They prefer to wait until they get some of their earlier purchases and/or make some additional kernel sales, Mr Pankaj N. Sampat, a Mumbai-based dealer, told Business Line.Stray sales (mainly re-sales) of good quality parcels were being done, he said. Prices are more or less unchanged — Benin, from $1,150 to $1,225 a tonne; Ivory Coast (IVC), $1,000 to $1,075; Senegal/Gambia/Bissau, at around $1,500 a tonne.</p> <p>Shipments from Ghana, IVC and Benin so far have been lower than normal. Shipments from Guinea Bissau have not started yet. “We continue to feel processing and kernel availability during May and June, maybe even July, will be lower than normal,” he claimed.Talking to delegates at the International Nut Council (INC) Congress in Singapore over the last three days, “we find there is tremendous uncertainty in the minds of people about all factors that can affect the market — RCN supply delays, lower kernel yields, European economic situation, currency volatility, concern about demand trends in the last 2-3 quarters, inability to judge future trends, etc.,” Mr Pankaj said. </p><p>All these are making things difficult for everyone — sheller, kernel trader, kernel processor and packer, and retailer — to take any significant position on the sell or buy side.But the downside will be limited because of tighter kernel availability in May-July coupled with higher cost of RCN replacement. Even if RCN prices come down in the next few weeks, it may not have any major impact on kernel availability in May-July or on kernel prices, because part of the decline will be due to drop in quality and some portion of the decline could be reversed if kernel activity picks up in June-July.A significant decline in kernel prices is possible only if there is a combination of significantly lower RCN prices and a very slow kernel market in June-July, he predicted.Price trend“The trade does not expect any big increase in prices either. But we do expect that prices will settle in the current range for the next few months with the faint possibility of crossing the recent highs, if there is strong demand in the next 4-6 weeks. </p><p> “If there is a sudden and quick improvement in flow of RCN or a big decline in RCN prices, the range could move lower, but there seems to be little chance of that happening,” he said.“Reasonably stable prices for six months will probably bring back some confidence into the market, making long-term planning possible. In the long term, as discussed at the INC, increasing production and reducing the wastage and inefficiencies in the supply chain (caused mainly due to lack of adequate infrastructure in many of the producing countries) are two areas which need attention. This will provide the much needed consistency of supply, stability in prices and sustainability of growth in the cashew sector,” he added.<br></p><p></p>