Cashew Nut Financing
The cashew season of export usually starts between February and March to June and July; starting negotiations with end buyers from the end of November. There is very high demand; but planning and understanding the trade finance cycle is key.
It is recommended that moisture content is between 8-10 percent; so that there are no quality issues. However, contracts usually state that anything below 12% is acceptable.
A number of other parameters that are usually agreed to are that foreign matter is not over 5% and also any defective product is kept lower than 10%.
The purchase prices vary widely in relation to the amount being bought, origin, quality etc; but it is important to know that cashews are graded depending on their level of whiteness and state of the kernel. It is important to note that there are 4 colours, which are used, and product is graded as such. At the kernel level, there are four styles of break and six sizes per pound that nuts are broken down into.
It is standard to see a purchase order of 100 metric tonnes upwards and usually the cycle we see is purchasers from Vietnam buying through brokers or traders from Africa.
On the whole, kernels are required to be kept dry and will be shaped in their characteristic way. To decipher a grade; this will depend on whether the product is scorched, the quality and whether product is broken. It is also important to pay attention to the outer skin and make sure nuts are free from (CNSL) oil.
An obvious specification is that it should be made clear that cashew kernels should be free from all living insects and resultant damage along with any contamination that may come from rodents or infection.
Buyers are very particular about the smell of the nuts; which should remain natural. This is along with the moisture content: This should not be over 5% by weight.