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  • Cashew exports are still rising despite the great spread of the COVID-19 pandemic worldwide

    May 5th, 2020

    Cashew export volume in the first 4 months of 2020 reached 137 thousand tons and 948 million USD, up 19.4% in volume and 4.2% in value over the same period in 2019. The export of raw materials has been spread around the world Cashew nut export value to Saudi Arabia increased sharply According to the Department of Processing and Agricultural Product Market Development, in April, the volume of Vietnam's cashew exports was estimated at 43 thousand tons worth US $ 281 million. This result has brought the export volume of cashew nuts in the first 4 months of 2020 to 137 thousand tons and 948 million USD, up 19.4% in volume and 4.2% in value over the same period in 2019.

    The United States, the Netherlands and China remained the three largest import markets of Vietnam, accounting for 36.8%, 11.9% and 6.9% of total cashew export value respectively.  Cashew export value increased the most in the Saudi market 2.4 times, whereas the market with the largest cashew export value decreased in China, down 46.7%.  The average export price of cashew nuts in the first 3 months of 2020 reached US $ 7,044 / ton, down 12.5% ​​over the same period in 2019.

    The volume of raw cashew imports in April was estimated at 105 thousand tons with a value of 132 million USD, bringing the total volume and value of cashew imports in the first 4 months of 2020 to 293 thousand tons and 413 million USD, an increase of 3, 2% in volume but down 13.9% in value over the same period in 2019.

    In April 2020, prices of domestic raw materials increased compared to the previous month. Specifically, cashew nuts purchased in Dak Lak were kept at VND 29,000 / kg during the month; In Dong Nai, the price of raw cashew was stable at VND 46,000 / kg.  In Binh Phuoc, the price of raw materials increased from 24,000 VND / kg to 28,000 VND / kg.  In the world market, in April, cashew kernel price increased by US $ 330 - 440 / ton for W320 and W240 codes.  In the European market, the price of W240 cashew is from 6,944 - 7,275 USD / ton, the price of W320 cash from 6,062 - 6,618 USD / ton and the price of W450 cash from 5,511 - 6,062 USD / ton.

    In the European market, the cashew price for orders delivered in May, June 2020 of W180 code is USD 8,700 / ton, code W210 is USD 8,200 / ton, code W240 is USD 7,800 / ton and code W320 is USD 7,300 /ton. Small cashew broken product codes are almost unsold because cashew kernel prices are now too cheap.

    The world market is heavily influenced by COVID-19

    Currently the world cashew market is heavily affected by the COVID-19 epidemic. Specifically, in India, the largest consumer of cashew in the world, is implementing a social policy until May 3.  This has caused great losses to the country's cashew industry, where processing plants are stuck and the raw cashew harvest is delayed.The Indian Federation of Cashew Industries said about 15,000 tons of raw cashew nuts are being left in processing plants across the country due to blockades.  Besides, domestic consumption in India was also reduced due to long-term isolation, leading to a decrease in the demand for raw cashew imports. This will affect the world price of raw cashew nuts when major exporting countries are in the main season.

    Although also affected by the decline in raw cashew prices, but Vietnam has an advantage in exporting cashew nuts when India implements a social isolation policy, cashew kernel buyers in the world are expected to turn to purchasing Vietnamese cashews. In China, increased management measures to prevent and control diseases in border areas, including the application of strict disinfection procedures for vehicles. On the Vietnamese side, the Ministry of Agriculture and Rural Development has asked the Chinese Embassy in Vietnam to discuss with the General Department of Customs of China about setting up a list of exporting enterprises according to the "green channel" (mainly cassava flour, cashew, vannamei, lobster).

    This is to reduce the time of customs clearance through the border, in order to create favorable conditions for exporting agricultural products to this country in the coming time.  In the EU, importers are in high demand to buy for stock because they are worried that the COVID-19 pandemic spread in Africa will affect the supply of raw cashew nuts for Vietnam and India.  Export prices of Vietnam's cashew kernels in the short term will increase slightly, as Western countries increase the demand for cashew reserves, besides China is gradually recovering its economy when the COVID-19 pandemic is well controlled.  However, the Vietnam Cashew Association still recommends that cashew processing enterprises not sign long-term contracts before they can buy raw cashew nuts because after the outbreak of COVID-19 is controlled, the price may increase again. Along with that, the risk will be very high if the processors try to buy raw cashew nuts from Africa without having a cashew contract or calculation plan to resell, it is recommended to buy raw cashew nuts only when it is possible to sell cashew nuts. Same price.  

    Lower cashew export targets this year

    According to the Import and Export Department, in 2020, Vietnam's cashew industry aims to export $ 4 billion, but due to the impact of the COVID-19 epidemic, the price of cashew nut exports has decreased, Vietnam's cashew industry may have to adjust. Export plan to 3 billion USD.  Although COVID-19 epidemic has been controlled in China, it has spread to many countries and territories around the world, especially in the US and Europe - Vietnam's traditional cashew export markets. In the United States and the EU, restricting travel has led to an increase in the need for essential food reserves. While cashews are a by-product, consumers will prioritize other important foods.  The price of processed cashew nuts decreased due to the decrease in raw material prices and the process of transporting processed cashew nuts was also difficult.