The Vietnamese cashew market is gaining significant attention from domestic and international investors and businesses due to its immense growth potential. As the world’s largest cashew exporter, Vietnam plays a crucial role in supplying high-quality cashew nuts and products to the global market.
Vietnamese Cashew Market in May 2024
In May 2024, the Vietnamese cashew market continued to witness dynamic developments, driven by strong domestic and export demand. However, cashew prices also experienced considerable fluctuations due to various factors, including raw material input prices, global economic conditions, and trade policies of importing countries.
1. Raw Cashew Market
- Prices of Raw Cashew Nuts (USD/MT)
Origin | Outturn (Lb) | Count | Price |
IVC | 50 | 175 | 1285-1300 |
Ghana | 47 | 200 | 1080-1095 |
Guinea | 49 | 220 | 1160-1175 |
Togo (Delivery in May 2024) | 47 | 190 | 1095-1110 |
Nigeria (Delivery in May-June 2024) | 46 | 200 | 1055-1070 |
- Market Overview
+ Raw cashew nut prices on the market vary depending on quality, supplier reputation, and buyer.
+ Prices of Vietnamese and Cambodian raw cashew nuts in the second season are around 24-25% for small nuts and 26-28% for large nuts, an increase of VND 2,000/kg due to rising demand from processors.
+ West African raw cashew nut prices are increasing faster than processed cashew nut prices. Raw cashew nut buying demand is strong, but processed cashew nut prices are not yet in line with raw cashew nut prices.
2. Processed Cashew Nut Market
- Prices of Processed Cashew Nuts (USD/Lb)
Grade | W180 | W210 | W240 | W320 | W450 | WS | LP | SP |
BRC & Smeta | 3.65-3.75 | 3.30-3.35 | 3.05-3.15 | 2.75-2.80 | 2.55-2.65 | 1.95-2.05 | 1.35-1.45 | 1.05-1.15 |
BRC | 3.55-3.65 | 3.25-3.30 | 2.90-3.05 | 2.65-2.75 | 2.45-2.55 | 1.80-1.95 | 1.20-1.35 | 1.00-1.05 |
HACCP | 3.45-3.55 | 3.20-3.25 | 2.80-2.90 | 2.55-2.65 | 2.30-2.45 | 1.75-1.80 | 1.10-1.20 | 0.95-1.00 |
- Market Overview
+ Prices from BRC and SMETA-certified factories are for high-end markets like Japan, China, and the Middle East.
+ Due to the strong increase in raw cashew nut prices, processors are also offering higher prices for processed cashew nuts of all grades.
+ LP grade, which had low demand in the past, is now being purchased again.
- Market Forecast
+ The Vietnamese raw and processed cashew nut market is expected to continue to grow in the coming period due to increasing domestic and export demand.
+ Raw cashew nut prices are likely to continue to increase due to limited supply and high demand.
+ Processed cashew nut prices may also increase due to rising raw cashew nut prices and strong demand.
The Vietnamese raw and processed cashew nut market is witnessing dynamic developments. Businesses need to closely monitor the market to develop appropriate business strategies.
>>> Read more: Cashew Harvest Season: An Important Time in Vietnam’s Agriculture Industry
Cashew Market May/2024: Fluctuations and Recommendations
The cashew market in May/2024 experienced significant fluctuations in prices and production due to several factors:
+ Severe heat: Negatively impacted cashew production in seasons 2 and 3 in Cambodia and Vietnam. However, the overall production in 2024 is forecasted to be similar to 2023.
+ Market demand: Demand for cashew nuts from the European market appears to be stronger than that from the US market. However, many buyers are cautious as they have secured a stable supply.
+ Raw material shortage: The supply of raw cashews is scarce due to reduced production, driving up raw cashew prices.
+ Speculative activities: Farmers and some traders are hoarding cashews, waiting for higher prices, further contributing to the supply shortage.
+ Tax policy changes: China increased import tariffs on in-shell cashew nuts, prompting Chinese businesses to switch to buying large-sized shelled cashews for shelling to avoid the tariff, impacting market prices.
+ FDI activities: A major FDI company purchased a large volume of large-sized cashews (W180, W210) for bonded warehouses, with payment within 5 working days.
Cashew prices in May/2024 showed an upward trend:
+ Cashew nut prices: Increased by 10-12% compared to the previous month.
+ Raw cashew prices: Increased by 18% compared to the previous month.
Recommendations for processors and investors:
+ Processors: Exercise caution when purchasing raw materials, ensuring reasonable prices to avoid losses. Refer to standard cashew nut prices to calculate appropriate raw cashew purchase prices.
+ Investors: Closely monitor the market, analyze price fluctuations, and make informed investment decisions.
Market forecast for cashews in the coming period:
+ Production: Overall cashew production in 2024 is forecasted to be similar to 2023.
+ Demand: Demand for cashew nuts is expected to continue increasing, especially from the European market.
+ Prices: Cashew prices may continue to fluctuate in the coming period, but the overall trend is upward.
The cashew market in May/2024 presents promising opportunities with good growth potential. However, investors and processors need to closely monitor the market, stay updated, and make sound decisions to optimize profits.
If you are looking for high-quality, healthy cashew nuts, come to CPT Corp. We are committed to providing you with the best products to meet your needs.
Contact Information:
HCM office Address: 191/6B Le Van Viet Street, Tang Nhon Phu A Ward, Thu Duc City, Ho Chi Minh City, Viet Nam
Factory Address: Nguyen Thai Hoc Street, Phuoc Tan Hamlet, Binh Tan Commune, Phu Rieng District, Binh Phuoc Province, Vietnam
Email: sales@cptcorp.vn
Website: cptcorp.vn
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