According to the Department of Processing and Agricultural Product Market Development, the volume of Vietnam’s cashew export volume was about 43 thousand tons worth US$281 million in April.

Over the world, cashew nuts (kernels) price increased by 330-440 USD/ton for W320 and W240 codes in April. Accordingly, the export volume of cashew nuts in the first 4 months of 2020 to 137 thousand tons with 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, accounting for 36.8%, 11.9%, and 6.9% of total export value, respectively. Cashew nut export value to Saudi Arabia increased sharply at 2.4 times. Meanwhile, cashews export decreased in China was the market at 46.7% in value.

Export prices of Vietnam’s cashew kernels in the short term will increase slightly. The reason for this is that Western countries increase the demand for cashew reserves. In addition, China is gradually recovering the economy due to the better control over the COVID-19 pandemic.

In the EU, importers are in high demand to buy for stock. They are worrying that the Coronavirus pandemic spread in Africa will affect the supply of input for Vietnam and India.

In China, increased management measures to prevent and control diseases in border areas. The measures such as strict disinfection procedures for vehicles. The Vietnamese Ministry of Agriculture has asked the Chinese Embassy to discuss with the Chinese General Department of Customs about creating a better condition for customs clearance. The solution is to set up a list of exporting enterprises according to the “green channel”(mainly cassava flour, cashew, lobster). This maneuver is to reduce the time of customs clearance at the border. Based on that, Vietnam can create favorable conditions for exporting agricultural products to China in the near future.

Raw cashew nuts (RCN)

The volume of raw cashew imports in April was about 105 thousand tons with a value of US$132 million. The total volume and value of RCN imports in the first 4 months of 2020 to 293 thousand tons, equal to US$413 million. The import increased at 3.2% in volume but decreased at 13.9% in value, over the same period in 2019.

The COVID-19 has heavily influenced the world cashew nuts market. Specifically, the largest consumer of cashew in the world – India – is implementing a social policy until May 3. This policy has caused great losses to the country’s cashew industry. The processing plants are in a difficult time and the RCN harvest is delayed. The Indian Federation of Cashew Industries said that about 15 thousand tons of RCN was stuck in processing plants due to the blockade.

Besides, Indian domestic consumption decreased due to long-term isolation, leading to a decline in the demand for RCN imports. The decrease will affect the RCN price. Moreover, major importing for RCN countries are in the main season.

Although also affected by the decline in raw cashew prices, Vietnam has an advantage in exporting cashew nuts as India implements a social isolation policy. Cashew kernel buyers in the world are forecasting to turn to purchase from Vietnam.

However, the Vietnam Cashew Association still recommends that cashew processing enterprises not signing long-term contracts for RCN stocking now. The company needs to make sure that they can sell cashew nuts. The risk is very high if the processors continue to buy RCN from Africa without having a cashew contract or plan to resell. It is recommended to purchase raw cashew nuts only when the company is possible to sell.