Cashew market hard to forecast due to Covid-19 outbreak

Lately, the Standing Committee of the Vietnam Cashew Association (Vinacas) warned that enterprises must be cautious with transactions during this time and should consider carefully before deciding to buy raw cashew from African countries, even with the neighboring country Cambodia.

Accordingly, enterprises need to analyze information from various sources, thereby evaluating the market situation and other impacts, especially the impacts of the spread of the Covid-19 and actual capacity of enterprises before deciding to sign contracts to purchase raw cashew or sell cashew nuts, including whether to stockpile raw materials or finished products or not, to ensure business effectiveness of enterprises. If enterprises have not balanced the cost and the selling price, or have not had any consumption contracts, they should not rush to buy raw cashew.

Of the cashew nut market share of Vietnamese enterprises, the US accounted for nearly 30 percent, the EU and other countries held 56 percent, and China got more than 14 percent. Although accounting for a small proportion, China has been playing an important role in affecting the prices of other markets for a long time. The steadiness in the price of cashew nuts in the Chinese market is a counterbalance that contributes to keeping the prices at the remaining markets.

With the current developments, when it is unable to ...read more