The cashew market is running red hot at the moment as demand continues to outstrip
supply, which is pushing the price to all time highs. The high price is forcing the market to
remain hand to mouth on buying as people fear a price fall. However this is leading to
buyers entering the market at the same time to cover nearby commitments, which in turn is
pushing the price higher. Reports out of Vietnam are now suggesting the crop is closer to
40% smaller than last year which is adding to the price pressure. On top of this there are
now concerns the Ivory Coast crop is up to 20% smaller than the previous year. The market
is looking for a demand lead response to pull the price back, which relies on consumers
reacting to the high price and moderating their demand. It’s unlikely there will be any
pleasant surprises from the supply side to help correct the price.