West African Raw Cashew is Much Much Cheaper

This entry was posted on Wednesday, February 15th, 2012 and is filed under Cashew.

West African raw cashew import is much cheaper to the Indian, Vietnamese and Brazilian processors. Though the out-turn and grades are below international standards, global buyers are attracted towards these markets only because of very very low prices.

Why the prices dropped so low? Is it a temporary decrease? Is it because of over supply?

Certainly there are some reasons behind this much collapse in the West African raw cashew market- 1) Decrease in the buying power. 2) Fall in Kernel consumption. 3) Down trend in the kernel market. These are the general reasons but there are also some other important factors – 1) Last year’s worst raw nuts and then extra losses to importers on account of further decay, which is mainly due to heavy moisture contents. 2) Some false business offers in the beginning. 3) Industry is not yet ready for full scale inventory purchases.

Filed Under: Cashew