Vietnam exported 8,300MT of cashew nuts to the US in July 2022 which is down by almost 50% in comparison to the 16,200MT exported in July 2021. YTD exports to the US are down 19%. Exports to the European market follows a similar trend, with volumes down by 47% YoY for July and 14% YTD. The most severe drop in 2022 was experienced during June and July. China had a fairly decent July to buck the trend, but overall, exports YTD from Vietnam are down 16% to its three major markets. Resultantly, prices are dropping as factories look for buyers at any level.
Production is slowing down, but this is not going to be felt until the inventory levels both in origin and destination decrease further. The production slowdown and lack of funds is also impacting raw cashew nut imports from Africa. Imports are close to 30% down compared to last year. The decrease in imports is far higher than the drop in exports, which is due to the fact that Vietnam also has a large carryover from the 2021 season. Furthermore, the low kernel demand is dampening imports and Vietnamese factories have no appetite for buying beyond their immediate requirements.
July and August are traditionally quiet months on the buying side. September is when supermarket tenders are expected to start again and go into the heaviest consumption season for the year.