19 Nov Global Cashew Report
Pangea Brokers updated Global Cashews Report
We are happy to share with you the updated market information for the Cashews.
Tanzania’s president asked for a 94 percent increase in cashew nuts to protect the farmers. With this move, he decided to buy about 220,000 tonnes of cashew nuts from farmers after private companies refused to buy at such high prices.
Tanzanians will consume all the cashew nuts they produce if they can not sell.
This supply shortage will afect as well to the prices of the two major cashew processor and exporter countries: India and Vietnam.
Following the way of raw nut prices, kernel prices are also tending to rise, and orders from Western countries have been higher in recent days.
The future of Tanzanian production is uncertain but the decision of the Tanzanian President clearly puts the market under pressure with a likely decrease in supply in the coming months which was quite unexpected.
However many exporters indicate that there are not any reasons to worry. There are still around 100,000 MT of raw cashew nuts available in Côte d’Ivoire and 50,000 MT in other West African countries.
In addition, the rainy season was very good in West Africa and many growers are seeing a good start of flowering which could lead to an early harvest for the third year in a row.
In India and Vietnam, the rainy season was very close to normal. If no late weather event happens, the outlook for 2019 production in the Northern Hemisphere will be clearly on the rise.
So in the coming weeks, we will see how the Global Cashew Market will evolve.