Increased Booking Rates Boost Cashew Prices

Over the past month and a quarter, cashew prices have seen a significant increase, with the cost of raw cashews reaching just over $1150 per ton. This rise is primarily attributed to an increase in booking rates from South Africa. Signaling a robust demand in the global market.

The production of cashews in key Indian states—Orissa, Andhra Pradesh, Karnataka, and Goa—has decreased by 20% compared to last year. This reduction in output has tightened supply lines and contributed to the upward pressure on prices.

Recent Price Fluctuations and Market Trends

In just the last few days, cashew prices have climbed by approximately $0,50 - $0,60 per kg. In past 20-25 day price has drooped by $10. Still, further increase is expected in the price. The resurgence in pricing is likely due to dwindling old stock levels, which are reportedly low. The new shipments of cashews are expected in the second half of May. And the market anticipates additional momentum in pricing.

Shift in Production to South Africa and Future Price Expectations

A new development in the cashew industry is the establishment of cashew processing facilities in South Africa. This shift has started to pose challenges in sourcing from the region, which traditionally relied on Indian processed cashews. Currently, the price stands at $1150 per ton, with expectations of a further increase of about $0,60 in the near future, reflecting ongoing supply constraints and robust demand.