OfBusiness Nuts Dailies | 7th July 2023

Price

• Cashew prices remain slightly high with W320 cashews priced at around Rs.590-595/kg and W240 cashews priced at around Rs.685-690/kg.
• Almond prices have remained relatively steady since last month, with NP 27 to 30 count size selling at around Rs.590-600/kg.
• Pistachio prices have also remained stable in recent days, with California 21-25 Inshell priced at around Rs.840-845/kg.

Demand and Supply

• Cashew inventory levels remain stable with no notable increase in unsold in-shell stock. However, the low demand could eventually affect cashew quality due to limited warehousing capacity.
• California aims to exhaust its current crop before focusing on selling the new crop, and pricing will naturally adjust if demand greatly surpasses supply. However, with global demand experiencing a decline, both domestic and international shipments face difficulties due to weakened consumption.
• In the domestic market, pistachios have experienced a decline, but globally, they are gaining momentum again. The supply from the USA and Iran is expected to stabilize as supply-related problems are resolved, leading to a decrease in prices.

News

• Cambodia’s crop may see a 10-15% decrease compared to last season. High prices for raw cashew nuts (RCN) and significantly lower shell realization have led to factory closures among processors due to the growing disparity.
• Sales for the year reached nearly 115 million pounds, marking a 32% decline from the previous year’s 168 million pounds. California’s current weather remains cooler than usual, and the 10-day forecast suggests a continuation of these conditions.
• 2022 California crop year experienced a 14% decrease in total supply. Iran’s crop was also impacted by frost, resulting in lower yields and prompting a shift towards local crops. As a result, inshell pricing remains high due to limited availability from the 2022 crop.

OFB’s Opinion

• Keep an eye out for the upcoming pistachio harvest in Iran, as it’s expected to be in full swing starting this month. Additionally, it’s anticipated that the pistachio crops in the USA will see an increase by the first half of July.
• Consider boosting the sales of cashews, as they haven’t shown improvement. Additionally, given the high prices of raw cashew nuts it is advisable for processors to be cautious about potential factory closures due to the disparity.
• Consider the impact of weather on almonds. The current almond harvest has been limited, and the availability of the new crop remains uncertain, leading to increased market stability