Price fluctuations in raw materials create double challenges for cashew exports

06:55 - 02/08/2024

NEWS 1: Price fluctuations in raw materials create double challenges for cashew exports

Despite recording double-digit export growth in the first half of 2024, the cashew industry is facing fluctuating prices and supply issues.

In the first five months of 2024, Vietnam exported 46.89 thousand tons of W240 cashew nuts, valued at $294.54 million, an increase of 44.1% in volume and 34.7% in value compared to the same period last year. Vietnam's main export markets for W240 cashew nuts include the United States, China, Iraq, Turkey, Saudi Arabia, Mexico, and the Netherlands.

Despite the double-digit export growth in the first half of 2024, Vietnam's cashew industry is facing raw material price fluctuations. This is due to a decrease in cashew production in West Africa and some countries, such as Côte d'Ivoire, implementing policies to temporarily suspend the export of raw cashew nuts. Over the past two months, Vietnamese cashew processing and exporting companies have only received 1/3 of the orders they signed contracts for, and the cashews received are of low quality, not meeting quality standards, with delivery prices increasing nearly 40% compared to previously signed contracts.

The fluctuation in cashew prices and production will significantly impact the production, processing, and export activities of Vietnamese enterprises in the third and fourth quarters of 2024. Vietnamese enterprises cannot sign export contracts as they cannot determine the specific price and quantity of imported raw cashews and must face higher input material costs while ensuring competitive selling prices in the international market. This poses a significant challenge for cashew exporting businesses, especially small and medium-sized enterprises with limited competitive capabilities.

Image: Raw material sources for processing are up to 90% dependent on countries supplying raw cashew nuts from Africa and Cambodia.

See more at: Price fluctuations in raw materials create double challenges for cashew exports.

NEWS 2:

USD exchange rate today 10/7/2024: The USD continues to accelerate in the face of the attitude of the Fed Chairman

On July 10, 2024, the USD VCB fell by 1 dong in two directions of buying and selling, the world dollar continued to rise when the FED Chairman was cautious about cutting interest rates.

In the domestic market, the USD Bank Rate, the foreign exchange rate and the domestic dollar rate this morning recorded a series of downward adjustments at banks. Specifically, Vietcombank has a buy level of 25,204 and a sell level of 25,454, down 1 dong in the direction of buying and selling compared to the trading session on July 9. The current USD buying and selling price is in the range of 24,000 - 25,500 VND/USD.

On world markets, the dollar strengthened today after Federal Reserve Chairman Jerome Powell acknowledged inflation has made progress, but did not give a clear signal that the U.S. central bank is about to cut interest rates. Powell said inflation “remains well above” the FED's 2% target, but has improved in recent months and “more good data will underpin” the central bank's need to cut interest rates.