Supply or Offer is Essential to Determine the Market

This entry was posted on Tuesday, January 10th, 2012 and is filed under Uncategorized.
Because of the over-selling in the global cashew kernel till March-end/April, getting a clear picture of the market or market trends is not possible. Over-selling or over-buying usually happens during the volatile Forex conditions. For more information, please read our articles : 1) Cashew Flashback 2011. 2) Falling Rupee Fuelled Forward  Contract Competition.
Supply is always essential to determine the price. If there are no new offers or no extra supply resources and mainly contracted/committed supply or delivery is possible for the next two months, there will be no market access at all. At present, most kernel exporters have enough export commitments for next 8-10 weeks and they can not sell more than what they have or beyond their capacity.

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