Raw cashew price trends Short term: Increase Middle term: Slight increase

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1 GAMBIAN CASHEW MARKET BULLETIN ISSUE no 2 OF APRIL 24, 2015 CASHEW MARKET IN THE GAMBIA Raw cashew price trends Short term: Increase Middle term: Slight increase After a slow start, cashew purchases in the North Bank Division are picking up, with prices firming up between D45/kg to D50/kg. In Aljamru Village (Upper Niumi), the big tomato paste tin is sold at 70 GMD/kg, equivalent to GMD/kg; some buyers are purchasing at 50 GMD/kg. Collectors in small villages around the weekly markets (loumos) of Fass and Ndungu Kebbeh, next to the Senegalese border, are purchasing cashew from farmers at 45 GMDkg. The cashew is further traded at around 50 GMD/kg on the weekly markets. Exporters in this Division have contracted middlemen to ensure of raw cashew provisions. Trade is also making headway in the Western Division. Collectors in Brikama area started purchasing from women and children and from small villages at prices varying between 33 and 35 GMD/kg. Much is expected from the Association of Cashew Traders, which is working with an exporter through GIEPA. The association started buying cashew on April 21 st ; the coming week their trade activities are expected to progress. In the Lower River Division, trade is slow; marketing in this area depends largely on the pulleffect of the West Coast (Brikama). Sellers are expecting to fetch around 30 GMD/kg for their initial sales.

2 CASHEW MARKET IN OTHER WEST AFRICAN COUNTRIES GUINEA BISSAU The official launching of the 2015 marketing season on April 20 th has been announced during the annual cashew season launching event attended by farmers, small traders, and exporters, as well as a large Gambian delegation. The season will run until end September. The 2015 farm gate price was fixed at 300 FCFA/kg (0.49 US$/kg), 30% higher than the past season. Government s goal is to export at least 200,000 tons of cashews this season, against 130,000 tonnes in Measures have been put into place to facilitate the movement of cashew nut trucks within the country. Reforms are also envisaged to control the smuggling of cashew along the borders. MALI The trade is mostly animated by buyers from Burkina Faso. Their competition with Senegalese and Gambian buyers is expected to increase with the build-up of the campaigns during the coming weeks. Prices have increased slightly; most of the sales on village and weekly markets are concluded between 325 and 400 FCFA/kg (D25 and D30.5/kg). CÔTE D IVOIRE Cashew trade is steady. Foreign buyers are diminishing their purchases as prices are high following the decrease of crop availability and stocks and the tougher competition in the market. Farm-gate prices increased slightly to 400 and 450 FCFA/kg (D30.5 and D35/kg), and the harbour wholesale prices fluctuated around 500 FCFA/kg - depending on shippers, shipment sizes and quality. BURKINA FASO The market is steady, supported by the sustained demand from local processors. Farm-gate prices maintained their last week level of 430 to 475 FCFA/kg (30.5 to 34 GMD/kg). Wholesale prices for an average cashew quality of 47lbs/bag is still averaging 525 FCFA/kg (37.5 GMD/kg) in the main collecting centers of Bobo-Dioulasso, Orodara and Banfora. Some exporters are reducing their purchases waiting for a decrease in prices. NIGERIA The market is stable, with farm-gate prices maintained at around 117 NGN/kg (25.5 GMD/kg) for an average quality of lbs. Wholesale prices in collection centres remained between 120 and 125 NGN/kg (26-27 GMD/kg). SENEGAL The amount of crop harvested is not yet matching the demand. In Casamance, the trade is expected to really pick up the next week. The limited cashew availability triggers increased competition between buyers around Sokone town in the Fatick Region of central Senegal, neighbouring the Gambian North Bank Division. The prices increased since last week, reaching now 400 FCFA/kg (D 30.5/kg).

3 INTERNATIONAL CASHEW MARKET Raw cashew The average raw cashew prices are stable since the mid-march The evolution of C&F prices of African raw cashew delivered to Asian harbours, in US$/ton (depending on origin, quality, quantity, shipment and payment terms) was the following: Origin and quality Mid- to end 9 April March 16 April 22 April Benin lbs Côte d'ivoire lbs Ghana lbs Nigeria lbs Senegal, Gambia, lbs Guinea Bissau 1500 Non available Non available Non available Mozambique lbs Tanzania 50-52, lbs Source: Cashew week, CommodAfrica, Rongead Cashew kernels This year, the boom period in the wholes market should start with the Ramadan fast commencing on June 19 th. The South Indian cashew harvest has reached its peak, but local kernel prices remained high because of the improved cashew quality. Premium W320 was trading around 230 INR/lb. (3.7 US$/lb.) in both the south and the western coastal regions of India at the beginning of the month. Since the beginning of last week they have stabilized around USD/lb ( GMD/lb). Quotations are regularly asked from Europe, USA and Middle East. The increasing demand from all consuming countries should support a slight increase in prices.

4 Indian FOB India prices of cashew kernels WW320 in US$/lb., 5th to 16th week 2015 Source: Rongead, EVOLUTION OF CURRENCIES VERSUS US$ The sharp fluctuations, and often severe depreciation of national currencies of most raw cashew producing countries against the US$ have a negative impact on imports and hamper the international trade. This is one of the factors which influence adversely traders decisions to take risks and be active in the trade. The table below illustrates the variations of exchange rates from 7th to 24th of April Country/currency US$ versus local currency, April 17 April 24 April Gambia GMD CFA Franc BCEAO - FCFA Nigerian Naira NGN Indian rupee INR European Union Euro Source: Oanda forex trading ADVICE TO GAMBIAN CASHEW STAKEHOLDERS Producers: sell 75% of the quantities harvested when prices proposed are equal or higher than 35 GMD/kg Local traders and exporters: expect strong competition and conclude revolving contracts for limited quantities, in order to be able to adapt to fluctuations in exchange rates. The West African CFA Franc is expected to depreciate strongly along this season inducing price increases, wherefrom the awareness needed in trading with Senegal, Guinea Bissau and Mali

5 Local processors: source and stock the earliest possible RCN raw material and be prepared to face increases in prices Kernel traders/exporters: foresee whenever possible room for price renegociations, in order to benefit from the kernel price increases expected along 2015.