Cashew Market Update September 2022 Week 38

A few months ago, it was reported that cashew prices for W320 would never be equivalent to the levels seen back in the 2008/2009 season. Yet, this has happened, and prices have increased despite rising production costs.

The market forces at play here are the usual suspects: inflation, USD strengths, high energy costs, and more. However, ample stocks have been reported in Europe and the United States, so there isn't an urgency for buyers just yet. Seed prices in Africa have started to reflect the market, and packers have scaled back production in Vietnam. 

They do not want to close production for fear of not securing labour when they start again. At the same time, packers are under pressure to continue sales to keep cash flows and secure release of seed in bonded stores. We will let you know as the situation progresses.