Upward Mood in Global Markets but Indians Cautious

This entry was posted on Thursday, November 15th, 2012 and is filed under Cashew.

This Diwali is highly successful in lifting the kernel market mood. However, the Indian cashew kernel has entered a sluggish ‘After Diwali Era’ because of the unrealistic price gap between domestic and export quotes. This gap has narrowed substantially to 10%during the Diwali period because of the 3-4% Rupee depreciation and sudden rise in the global demand. It may further come down to 4-5% (excluding export incentives) as market always tries for some kind of price equilibrium.

What will be the kernel market behavior during such a price-correction?

1) Negative on the Indian market?

2) Positive on export markets?

– Market influencing factors like raw cashew supply, kernel demand and supply, actual consumption, economic situation and competition from other dry fruits will decide the future.

Filed Under: Cashew