Y2022 New Crops - Info from Vietnam

The basic info of 2022 RCN.

The market is already full of detailed information about 2022 new RCN!

Recently, our team has frequently visited Binh Phuc and Dong Nai, which are the heart areas of cashew planting and processing. We found that in Binh Phuoc province, the heart of cashew processing in Vietnam, people still seem to be on holiday now... The epidemic remains high risk, processors almost run of RCN, the market kernel price is too low and domestic RCN prices still remain high, and these reasons have led to the delayed opening of a large number of small and medium-sized processors.

We found that about 60% of processors in Binh Phuoc Province currently do not have RCN available, while about 70% of the RCN available in the market is controlled by a few big players, and the open prices given are extremely high.

At the same time, because the current bid offers from Europe and US are far below the expectations of processors, the imbalanced price between RCN and the kernel has further increased, and processors can’t balance their production. Most people choose to wait until the new crop arriving, it seems to be one of the safest ways at present.

The good news is in BU DANG, people already have started to collect new RCN, and transactions already appeared, although the volume is not large, but it is still a good start. However, due to the recent anti-seasonal heavy rainfalls, the new RCN has been delayed. It is expected that the harvest time of large quantities will be delayed by 2-3 weeks than before, and the time for a large quantity of RCN to arrive at the processor's warehouse may be in early April.

At the moment, the market is currently full of news about RCN delays, lower production volumes and decreased quality. Usually, before the new RCN coming, there will always be various rumors in the market, which is normal, but we need to look at it rationally, because most news of RCN often comes from market holders and large farmers.

Combined with the current weather conditions and the real feedback from the market, the probability of RCN delay is extremely high, which we have to admit. However, the questions of decreased quality & quantity still need double check, because the harvest of agricultural products depends on its last month. At the same time, the reality is that the heavy rainfall has a certain impact on the flowering and growing of cashew trees, especially in Cambodia.

We can't judge whether the price rises or falls blindly, but shall look at it rationally, because the supply and demand determine the price, which is the core. 

 Feb 2022

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