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  • Warning danger about the price of raw, lo buying expensive and cheap

    Nov 27th, 2019

    As of September, raw things were offered high prices by suppliers. As raw West African countries (40-42 lb) cost 1,100 - 1,160 USD / ton; Ghinea Bissau (53 lb): 1,570 USD / ton; Cashew Tanzania (51 lb): 1,520 USD / ton. At the end of September, raw cashew prices showed signs of a slight decrease, but buyers remained indifferent due to unbalanced raw cashew prices.  How to protect the price of your device worry about your purchase Raw cashew prices continue to soar in international transactions.

    By October, the Tanzanian Government had finished inventory of the 2018 crop and opened the 2019 service in the form of bidding. Specifically, the first session opened in late October with more than 20,000 tons was successfully auctioned. In particular, T&T Group (Vietnam) won more than 13,600 tons bid. However, the average winning bid at this time is equivalent to 1,570 USD / ton.

    Vietnam Cashew Association (Vinacas) said that crude price movements are contrary to the expectations and predictions of many people when the price of the next auction is always higher than the previous one, mainly due to the demand for raw cashew from India. and Vietnam is higher than the supply.

    Demand is greater than supply due to many other factors. Currently, India is increasing import tax on nuts from the US that can compete with cashew so Indians turn to using cashew more. Processors in this country reduce exports, only selling domestically.

    Vietnam has conditions to increase sales to markets outside India. However, cashew kernel prices are not as high as those of Indian processing companies selling domestically. "Therefore, the price of raw cashew nuts depends on the needs of Indian companies and prices are pushed up mainly by Indian companies," Vinacas said. In the country, many Vietnamese cashew processing companies have run out of raw cashew nuts for production. There are a number of companies that have purchased enough goods to produce the new crop but some are short of raw materials for 1-3 months until the new season.  How to protect the price of your device worry about your purchase The asking price of crude crop in 2020 will be comfortable in February - March, likely to decrease gradually from May to June and then repeat the same cycle as 2019. Due to the lack of raw materials, the price of domestic raw cashew nuts was also traded higher than the price of cashew kernel contracted for export at the present time.

    According to Vinacas Information Council, the price of raw cashew nuts has a higher level of sensitivity than cashew kernels. Typically, the raw thing that raises prices is fast and plentiful but the price drops slowly and drips. Recently, the raw cashew is fluctuating in an upward trend with a much larger amplitude than that of the kernel. "This is a dangerous warning factor, it should be noted for cashew producers to avoid losses when deciding to buy raw cashew," Vinacas recommends.

    However, Vinacas also forecasted that from now until the beginning of the new crop in 2020, the price of raw cashew nuts will be basically stable, the increase and decrease will be only slight fluctuation. The price of crude cashew at the beginning of the 2020 crop offered in February - March will be more comfortable and likely to decrease gradually from May to June and repeat the cycle like 2019 past.