CASHEW BULLETIN

Cashew Bulletin


A little more activity was seen this week in Europe

as the Euro strengthened and prices from origin

dropped a little. Inventories remain tight and the

pattern of short-term cover continues. The next few

weeks could remain very quiet as we approach the

holiday season for the Europeans not to mention the

distraction of the World Cup. Further distraction and

some nervousness have been added by the news that

a couple of UK trading houses has gone out of business.

This is no surprise and was predicted in the

Cashew Bulletin some months ago. Will there be a

domino effect? Had those fi rms major commitments

on cashew kernels? Only time will tell.

There will be little change in the fundamentals over

the coving twelve weeks as the next harvests are

in Sept/Oct in Brazil and Indonesia. It will be about

demand for now and just how well the busy season

in Asia and the Middle East goes closely followed by

cover for the run into the end of the year in Europe

and the USA. For the time being demand is not

promising and there are the ingredients for a price

correction in the marketplace. The next move looks

largely dependent on the management of RCN stockpiles

and the timing of the next wave of cover taking.