<p></p><p>Cashew market was steady last week on some buoyancy after three weeks of declining trend.Average prices were for W240 at around $3.90; W320 at around $3.50; W450 and SW320 at around $3.35; Splits at around $2.45; Pieces at around $2.20 all an lb (fob). Business was done on both sides of the average but very limited transactions were reported although there was a fair amount of buying interest at the lower end of the range, according to trade sources in Mumbai.</p> <p>Domestic market was also steady with some demand emerging as prices have come down by about 5 per cent from the peaks of early / mid May, Mr Pankaj N. Sampat, a Mumbai-based dealer told Business Line.The outlook for the rest of the year continues to be hazy, he said. There are arguments for both sides – prices to drift lower and prices to move up. On the supply side, availability is reduced in terms of crop size in some origins and kernel yields in others. Bulk of the Raw Cashew Nut (RCN) has been purchased at high prices. </p><p><b>demand</b> </p><p>On the demand side, there is concern about the extent of damage to demand on account of higher prices and tough economic conditions in the major importing regions. Since the 2012 supply factors are more or less known by now, the trend for the next few months will depend on what happens on the demand side.</p> <p>The fact that not much business has been done for forwards is a double edged sword, Mr Pankaj pointed out. If the shellers are not able to hold on till demand comes in, they may well have to reduce prices if there is a need to move stock. However, since bulk of the current crops has been purchased and there is no much replacement left to buy, there may not be much pressure unless demand is very, very slow. On the other hand, if buyers need to buy significant volume to fulfil commitments or to make new sales, they may not get adequate cover unless they pay some risk premium to the large shellers for forwards, he said. </p><p>shipments</p> <p>As shipments are starting from Bissau, prices for Guinea Bissau came down to $1,300-1,350 (c&f) range. Prices for good quality Benin and Ivory Coast (IVC) are unchanged, but there are lower offers for lower yield parcels. Some traders have reasonable stocks plus there will be some quantities available for inter-sheller trading but quantities with origin traders is now limited, he said. </p><p>Since large shellers do not have much forward sales, they will be in the market to sell whenever there is a spike in prices due to bunched up buying. This selling interest and the concern about impact of higher prices on demand will put a cap on the price rise. </p><p></p><p> </p><p></p><br><p></p>