Cashew Nut Market Update – March 2022
The Cashew Nut market has been relatively quiet for some time, with main activity coming from India, which has been proving vital for the operations of packers in Vietnam. Low demand has been putting pressure on the price of Cashews to move downwards, however many growers/processors have been hesitant to do this, as they well know that many major buyers are waiting to seize the opportunity to buy at lower prices. The activity from India has kept the market price steady, but low demand form other regions remain, thus keeping the downwards pressure on the market. At present, it is very difficult to see how the market will develop as we have many unstable influencing factors. Currency and shipping being the main two, as we see USD values and Oil prices soaring, with investors run to safe heavens at this difficult time for Eastern Europe. It is worth noting that the escalating tensions and conflicts between Russia and Ukraine, may well have a significant impact on the demand in the European market.
Over the last two weeks, Vietnam and Cambodia have seen heavier than usual rains. This isn’t expected to have had a huge effect on crop yield as a result of damage but may however delay harvest due to slowed crop development. West Africa see no bad weather or conditions which could negatively impact on crop development or quality, so the market assumes that all is well with crop yield and quality expected to be as expected.