| Prices for cashew kernels continue to move within a relatively narrow range. |
| Processors are doing everything they can to maintain the balance between supply and demand in order to create stability and safeguard a sustainable supply chain. Although the price of RCN has come down slightly, the quality has also declined, resulting in higher processing costs and lower outturns. |
| Global uncertainties are weighing on consumer behavior. With rising energy costs, consumers are becoming more cautious in their purchasing decisions, and this sentiment is felt throughout the entire supply chain. Roasters and packers are therefore avoiding long positions and are covering their needs on a hand-to-mouth basis. This contributes to market stability, as we are not seeing large one-time inquiries but rather a steady, continuous demand. |
| Increasing sea freight costs are currently adding approximately USD 0.02–0.03 per lb to kernel prices. However, this remains volatile and could change quickly due to the ongoing conflict between the United States and Iran. |
| Another development emerged yesterday: the U.S. Trade Representative (USTR) announced that it may take action under Section 301 when it determines that a foreign country’s trade practices are unfair, discriminatory, or burden U.S. commerce. Among the countries under investigation are Cambodia, Vietnam, and Nigeria, all relevant origins for cashew production. This could potentially lead to additional import duties. |
| However, the AFI noted that products previously classified as “unavailable in the U.S.” would not be subject to these new tariffs. Cashew kernels traditionally fall into this category, making an exemption likely, but given the many developments in recent months, nothing can be taken for granted. |
