Cashew kernel prices have increased again in September. W320 and W240 have increased by a further 5-10% respectively. The continued increase is driven by several factors. Firstly, a very significant volume of the RCN is held by a few big traders who are having more success driving prices up. Secondly, demand rom China and India has increased. Thirdly, some buyers around the world were caught out in short positions and forced to cover in the rapidly rising market.
At the time of writing our dollars’ bull run is over for now, which has further increased AUD landed costs. What happens next is quite uncertain, but the market has significant upward momentum and covering at least your own demand is advisable.