Recent Price Decline

In the last month, the prices of raw cashew nuts have fallen by about $0,24 to $0,48 per kg. This decline follows a recent increase driven by stockists buying and stocking cashew nuts. However, these stockists are now gradually selling their stocks, contributing to the current declining trend due to sluggish demand. A few days ago, cashew nuts were sold for $7,80 to $8,16 per kg, but prices have since dropped by $0,24 to $0,36 per kg, with further declines possible.

Factors Influencing the Current Market

Last year, the price of raw cashew nuts during this period was around $1,56 per kg. Now, the price has increased to $1,86 to $1,92 per kg. Despite the rise, the current month's production has been affected by about 40%. The previous price increase in May/June led some stockists to buy cashew nuts at higher prices, but now, due to the scorching heat and rain in some areas, there is a shortage of customers, forcing goods to be sold at lower prices.The customer base remains sluggish, with no significant demand in sight. The pressure from new arrivals is also contributing to the price decline. Overall, there is no expectation of a long-term rise in prices for the next few months.

Consumption Patterns In The Market

Cashew nuts are mainly consumed by sweet makers, and their demand has also become sluggish. Despite the lower production, there is no expectation of a significant price increase in the short term. However, there might be some demand and price increase as Diwali approaches, with potential increases in price and arrival during the festive season.

In summary, the weak demand has led to a decline in cashew prices over the past month. Factors such as the slow customer base, new arrivals, and current market conditions suggest that there will not be a significant price rise in the coming months. However, potential demand during Diwali may lead to a temporary increase in prices.