| The Brazil nut market is experiencing early season uncertainty, with raw material prices rising sharply as factories compete for limited volumes from the early crop. This pressure is driven by factories eager to begin production following last season’s short crop, which led to early closures, as well as by strong customer demand from companies that continue to include Brazil nuts in their product lines and now require early season coverage. |
| The market has also been influenced by currency developments. Following the inauguration of the new centrist government under Rodrigo Paz, the Boliviano has strengthened, making USD export prices less competitive. The unofficial USD to BOB exchange rate has remained stable around 9, despite earlier expectations of a sharp devaluation driven by Bolivia’s economic crisis and fuel shortages. Emergency credit lines and fuel agreements from international partners have helped ease diesel queues and provide short-term economic relief. |
| From a demand perspective, there is strong demand for early shipments. However, the outlook for shipments from April/ May onwards is less clear. Much will depend on how retail markets react to current prices and whether consumers will continue to buy Brazil nuts at these levels. |
| At present, most shippers are either quoting high prices or have withdrawn from the market entirely. It remains uncertain whether they will attempt to drive down raw material costs later or whether they will bet on a future currency devaluation. |
