RCN supply from West Africa continues as expected with a total of 1.75 million MT exports by the end of September. Tan-zania’s government finally started selling the 2018 crop in August and shipments have been slow, leading to firmness in RCN prices. Current price levels are $1,250 USD/MT (for IVC 45 KoR) compared to $1,100 USD/MT a month back. However, the kernel market is stable to silent with no movement in prices.
With most processors in Vietnam and buyers covered through year end, prices for kernel are expected to stay weak to stable. However, processors in India are not covered for RCN beyond November. Also at current kernel prices, demand in China, the Middle East and main markets like the US and Europe could be strong. Looming new crop arrival in Tanzania and Mozambique and slower shipments up to now will lead to softness in RCN prices as well. The kernel market is ex-pected to range bound between $3.30 - $3.80 USD/lbs. for W320s.