Cashew Market Update, 16.09.2022
Just a few months ago, it seemed unfeasible that we would see USD Cashew prices for W320 at levels at similar levels to 2008/9 but here we are, and this in spite of rising production costs!
The market forces dictating these low levels we have all read about numerous times – Inflation/war/USD strength/high energy costs/recession (or fear of it!). Consequently, it would appear that there are ample stocks in Europe and the USA and a lack of urgency for buyers to engage.
Naturally, seed prices in Africa have fallen to reflect the quiet market and in Vietnam, packers are generally scaling back production in order to survive (they are reluctant to close completely for fear of not securing labour if and when they start up again). These same packers are under pressure to sell in order to keep cash flowing and secure release of seed in bonded stores.