India: Cashew Prices Likely To Be Bullish In Next Few Weeks

Mintec Global
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Despite the fall in the cashew prices due to the COVOI-19, the picture is likely to improve in the coming months.

Last month all the varieties of cashews performed better than the price the market opened at the beginning of the month. For example, W240 closed at $9,95/ kg after opening at $9,89/kg on July 1. Similarly, W320, after opening at $8,52/kg, closed the month at $8,61/kg, W450 was $7,56/kg and rose to $7,67/kg, and LWP was $6,06/kg before reaching $6,46/kg. the only exception was SWP, which opened at $5,24/kg but closed on the lower side at $5,13/kg at the end of the month.

With the festival season coming up and the wedding season, the Indian market for cashew is on the revival. According to analysts, if the market’s trend is showcasing now continues, kernel prices are likely to continue.

India, one of the largest consumers of cashew with 1.6 million metric tons, is projected to have a growth of a CAGR of 4% between the forecast period of 2021 and 2026.

India is also likely to have a better run in the international market with the cashew despite lower demand. Mainly if COVID-19 cases increase in Europe, it will impact the African crop of 2021 negatively. The only factor that might hamper India’s international supply in cashew is Vietnam, which might tap into Indian markets since they did not shut down the processing of cashews despite the lockdown.

However, India is still the dominant exporter of cashews in West Asia after overtaking the U.S. The market is likely to be better.

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