Dear All, Well when everybody is returning from his or her holidays, we could try to see what is exactly happening in cashew land. First we can report that we have joined Vinacas as a member and will be attending the meeting at Phu Quoc between 13/16 November 2017. Which are the ingredients now what is happening in the market, we have the following points.

1. We have seen heavy arrivals especially in Vietnam of RCN from Africa, and these arrivals were not of especially good quality.

2. To pay for these arrivals immediately there was a pressure on shellers to offload their arrivals RCN into kernels sales.

3. Even some RCN shipments were diverted to India for that matter, because payments were not effected.

4. This resulted into the market dropping for W320 from USD 5.00 to USD 4.70 per lbs now, but for prompt shipment.

5. One would expect that when all these RCN arrivals would have been dealt with, kernels prices would restore themselves, but it seems that for especially August//September 2017 shipment it hasn’t restored.

Last prices being offered from Medium shippers as follows: Vietnam W240 - USD 5.15 – USD 5.20 FOB – India USD 5.25 – USD 5.30 FOB Vietnam W320 - USD 4.85 – USD 4.95 FOB – India USD 4.95 – USD 5.05 FOB Vietnam W450 - USD 4.80 – USD 4.90 FOB – India USD 4.90 – USD 5.00 FOB Vietnam LP - USD 3.60 – USD 3.70 FOB – India no offers Vietnam WS - USD 4.40 – USD 4.50 FOB – India no offers Vietnam LBW320 USD 4.70 – USD 4.90 FOB – India no offers. Aldebaran has got following available:

Vietnamese/India at sellers option W320 at USD 5.10 per lbs FCA Rotterdam

Vietnamese LBW 320 at USD 4.85 per lbs FCA Rotterdam

Vietnamese LP at USD 3.65 per lbs FCA Rotterdam

Vietnamese W240 at USD 5.45 per lbs FCA Rotterdam Afloat to Rotterdam:

1 fcl Indian W240 crop 2017 at USD 5.45 CIF - eta 27/8

1 fcl Indian W320 crop 2017 at USD 5.25 CIF - eta 27/8

1 fcl indian W450 crop 2017 at USD 5.00 CIF - eta 27/8

1 fcl Vietnamese LP crop 2017 at USD 3.65 CIF - eta 16/9

1 fcl Vietnamese W320 crop 2017 at USD 5.00 CIF - eta 8/9 In case you are interested in organic cashews please contact us directly, we can offer you various grades.

Aldebaran view:

1. We might see an increase of max USD 00.10 cents on all grades for the shipping periods September through December 2017.

2. Cover nearby until end of September 2017 shipment, and then wait. 3. In case, market moves up. Only buy until end of December 2017 shipment. 4. We feel downward pressure will be for January 2018 shipments forward, abstain from

buying for time of being. What can we expect; here is a mix of comments of various experts: Global Cashew Market at a Glance India: Indian cashew kernel price in the domestic markets were either unchanged or slightly lower for various grades across the states. With the commencement of festival season, we expect prices to pick up in the coming weeks. Vietnam: Vietnam cashew kernel exports in the first half of August 2017 totalled 17,541 tonnes, valued USD 175.654 million. Since January 2017, year to date kernel exports stood at 205,455 tonnes, valued USD 2 billion. Vietnam RCN imports in the first half of August 2017 totalled 103,005 tonnes, valued USD 207.282 million. Since January 2017, year to date RCN imports stood at 994,364 tonnes, valued USD 1.92 billion. Overall demand for cashew kernel was generally weak as most of the buying destinations are yet to turn up fully after the summer holidays and the demand may gather momentum in the next one to two weeks’ time period. Source: Cashew info Cashew Market Commentaries from Experts The CNSL demand is very sluggish and no big party is interested in stocking the material. Prices are tending towards INR 18 per kg mark and would touch there in the coming weeks unless demand improves. Present rate of cashew shells is INR 6.10 per kg. Cake is sold around INR 3.90 and CNSL is quoted INR 19.50 per kg. Availability is good. There is no demand for Cardanol, which has made cashew distilleries to refrain from their purchases. The festival season has started which would improve the cashew kernel demand. Therefore, shelling should pick up and accordingly shells availability will increase. Source: Om Prakash Phadnis, Panruti CNSL update Mangalore-Karnataka CNSL last week traded in the region of INR 21 per kg. Cake fetched around INR 4.1-4.25 per kg and shells about INR 6.5-6.7 per kg. The price of Cardanol settled slightly lower at INR 43-44 per kg when compared with previous week close of INR 44-45 per kg. Source: Kanco Venkatesh and Santhosh Silva, Karnataka Market was somehow quiet because of weak buying interests from buyers during last week. Limited buying interests were seen for pieces with WS traded at USD 4.25/4.30, LP at USD 3.55/3.75 per lb FOB for August and September shipment. W320 traded at USD 4.65/4.70 per lb FOB, sold by medium packers. Prices indicated by top and reliable packers did not any decline in price i.e. W240 at

USD 5.15/5.20, W320 at USD 4.90/5.00, W450 at UDS 4.70, WS at USD 4.35/4.55, LP at USD 3.75/3.85 per lb FOB for September – December shipment without being interested by buyers. Demand was weak as it is now the summer holidays from major buying destinations and there are surely some rooms for demand in the coming weeks, as buyers need to buy some quantities for their requirements. Cashew prices have constantly gone up from the beginning of the crop without a good reason. Processors have paid very high prices of RCN, all costs relating to processing have strongly gone up, forcing packers to offer/sell at reasonable prices otherwise losses will happen to them. If demand in the coming weeks is strong, prices of kernels will get the much-needed support otherwise, prices may fall in the coming weeks. Despite the fact that demand from export market was too weak, local market of RCN and kernels were firm due to some demand from traders whom need to be guaranteed for RCN delivery accepted by processors at high prices. Short strong demand of both RCN and kernels have seen and forced small packers/processors, which do not have adequate information of export market to buy RCN at high prices to process. This is too dangerous for small ones as risk is there with the truth that current situation of export market is at dull and no signs of good recovery of demand in the coming week. Source: Mr. Kim, Khiem Nguyen Co., Ltd, Vietnam Prices are stable during last week while deals are a little more active than previous. It seems many distributors have started preparing stocks for the mid-autumn day. Hope this would be a good sign for Chinese markets. Source: Will, Lee, China Please kindly see below statement for import/export of RCN and kernel up to July 2017 and the comparison between 2016 & 2017:

STATEMENT OF IMPORTING RAW SEEDS IN VIETNAM UP TO JULY 2017

1. Quantity Import

Month Quantity

(MT) Compare to same period 2016 (%)

1 51,343 50.99%

2 42,570 103.56%

3 74,917 -35.79%

4 102,772 190.86%

5 149,794 48.41%

6 250,622 56.64%

7 214,949 29.60%

Total 886,966 39.96%

2. Top 10 Biggest Importers

Month Top 10 Biggest Importers ( Members of Vinacas)

1 Cao Phat, Hoang Son 1, Da Kao, Rals VN, Tanimex-LA, Haprosimex JSC, My Le, Tu Hai, Duy Duc, Phuc An

2 My Le, Da Kao, Cao Phat, Phuc An, C&N (Tanimex-LA), Duy Duc, Phu Thuy, Haprosimex JSC, Tan Hoa, Bimico

3 Da Kao, My Le, Hapro Binh Phuoc, Bimico, Tan Hoa, Haprosimex JSC, Kieu Loan, Cao Phat, Minh Huy, Thao Nguyen

4 Long Son, Hoang Son I, Olam VN, Rals VN, Tan Hoa, Olam VN (IZ Bien Hoa II), Duy Duc, Bimico, Tu Hai, C&N (Tanimex-LA)

5 Long Son, Hoang Son I, Rals VN, Da Kao, Olam VN, C&N (Tanimex-LA), Bimico, Olam (IZ Bien Hoa II), Minh Huy, An Phu

6 Hoang Son I, Long Son, Da Kao, Kieu Loan, Olam VN (Bien Hoa IZ II), Olam VN, Thao Nguyen, Cao Phat, C&N (Tanimex-LA), Bimico

7 Olam VN, Hoang Son 1, Long Son, Olam VN (Bien Hoa IZ II), Rals VN, Kieu Loan, Da Kao, Thao Nguyen, C&N (Tanimex-LA), Nam Ha, Phu Thuy, Tan Hoa

3. Importing Markets in July

TT

IMPORT ORIGINS

VOLUME (Mts.)

1. Cote DIvoire (Ivory Coast) 97,733.1

2. Nigeria 36,988.4

3. Ghana 36,905.0

4. Guinea 13,916.1

5. Benin 10,652.9

6. Burkina Faso 8,058.3

7. Togo 4,864.5

8. Senegal 4,446.2

9. Guinea-Bissau 2,157.9

10. Gambia 1,884.9

11. Cambodia 1,540.0

12. Niger Tanzania (United Rep.) 661.1

13. Indonesia 221.8

14. Bangladesh 199.0

15. Tanzania (United Rep.) 179.1

16. Myanmar (Burma) 149.0

17. Gabon 145.2

18. Mozambique 132.0

19 Laos 87.9

20 Cameroon 26.0

Total 214,948.5

STATEMENT OF EXPORTING KERNELS IN VIETNAM UP TO JULY 2017

1. Quantity Export

Month Quantity

(MT) Increased Compare to same period

2016 (%)

1 17,815 -28.85%

2 13,500 54.44%

3 24,424 -14.01%

4 28,915 -6.52%

5 32,898 -3.04%

6 35,900 5.14%

7 37,551 14.66%

Total 191,003 -1.52%

2. Export Markets 2.1/ USA

Month Quantity

(MT) Compare to same period 2016 (%)

1 5,518 -17.09%

2 3,752 105.39%

3 8,486 0.86%

4 9,633 -17.43%

5 11,692 -0.67%

6 12,472 13.54%

7 12,352 22.82%

Total 63,905 4.12%

2.2/ China

Month Quantity

(MT) Compare to same period 2016 (%)

1 3,452 -47.62%

2 2,309 60.01%

3 2,968 -31.87%

4 2,776 -10.80%

5 3,288 -11.36%

6 3,614 21.67%

7 3,837 -9.01%

Total 22,243 -15.74%

2.3/ EU & other markets

Month Quantity

(MT) Compare to same period 2016 (%)

1 8,844 -25.00%

2 7,438 35.96%

3 12.970 -17.04%

4 16,507 2.19%

5 17,918 -2.88%

6 19,815 -1.86%

7 21,363 15.62%

Total 104,855 -1.24%

3. Markets Ranking

Month Top 10 Biggest Markets

1 USA, China, Netherlands, Australia, UK, Germany, Canada, Thailand, UAE, India

2 USA, China, Netherlands, UK, Australia, Thailand, Canada, Singapore, Germany, Russia

3 USA, Netherlands, China, Australia, UK, Thailand, Singapore, Canada, Israel, Germany

4 USA, Netherlands, China, UK, Australia, Singapore, Germany, Canada, Israel, Thailand

5 USA, Netherlands, China, Singapore, UK, Australia, Germany, Thailand, Canada, Israel

6 USA. Netherlands, China, UK, Sinpapore, Australia, Thailand, Germany, Canada, Russia

7 USA, Netherlands, China, UK, Singapore, Australia, Canada, Germany, Thailand, Russia

4. Enterprises took part in Exporting

Month Top 10 Biggest Exporters ( Members of Vinacas)

1 Olam VN, Long Son, Thao Nguyen, Hoang Son I, Minh Huy, Duy Duc, Tan Hoa, Rals VN, Dao Kao, Tanimex

2 Olam VN, Long Son, Thao Nguyen, C&N (Tanimex-LA), Duy Duc, Olam VN (Bien Hoa IZII), Da Kao, Cao Phat, Bimico

3 Olam VN, Long Son, Thao Nguyen, Hoang Son I, Rals VN, Olam VN (IZ Bien Hoa II), Da Kao, Cao Phat, Minh huy, Tan Hoa

4 Olam VN (IZ Bien Hoa II), Long Son, Thao Nguyen, Olam VN, Lafooco, Hoang Son 1, Minh Huy, Da Kao, Rals VN, Haprosimex

5 Olam VN (IZ Bien Hoa II), Long Son, Thao Nguyen, Phu Thuy, Olam VN, Minh Huy, Hoang Son 1, Lafooco, Hapro (North), Rals VN

6 Olam VN (Bien Hoa IZ II), Long Son, Thao Nguyen, Olam VN, Hoang Son 1, Lafooco, Rals VN, Hapro (North), Da Kao, Minh Huy

7 Olam VN (IZ Bien Hoa II), Long Son, Thao Nguyen, Hoang Son I, Olam VN, Lafooco, Rals VN, Hapro (North), Da Kao, Hanfimex VN

5. Exporting Markets in July

TT EXPORT MARKET VOLUME (Mt)

1. UNITED STATES OF AMERICA 12,351.55

2. NETHERLANDS 6,149.80

3. CHINA 3,837.10

4. UNITED KINGDOM 2,007.28

5. SINGAPORE 1,553.21

6. AUSTRALIA 1,304.62

7. CANADA 1,241.69

8. GERMANY 1,121.67

9. THAILAND 1,006.12

10. RUSSIAN FEDERATION 638.84

11. ISRAEL 485.78

12. UNKNOWN 529.70

13. INDIA 547.16

14. SPAIN 444.92

15. FRANCE 339.39

16. LEBANON 278.49

Kindest regards, Paul, Nurcan, and Mark Trade department Aldebaran Commodities B.V. Rotterdam | The Netherlands Direct +31-107620510 (Paul) Direct +31-107620514 (Nurcan) Direct +31-107620515 (Mark)

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