"Sky is the limit but now we used to say we should not limit our dreams upto sky..Go beyond sky"....2010 as far as cashew industry is concerned , had crossed its all limits....2011 seems to be tough for processors...majority of cashew processors calculation went wrong in this season due to rapid change in raw cashew prices..the main reason for this situaton :
- failure of local crops
- Vietnam played key role in purchasing in 2010
- almost 60% short in Indonesia
- Chinna and Brazil upcoming players in market
- high aution price for Tanzania crop
In India unpredictable rainfalls which will leads shortage in local crops and hike in wages in cashew industry adding worries to processors.As per our market study morethan 50% of factories will shut down in Andhara, Orissa and West Bengal due to shortage in crop by dec- jan month.
Recent studies shows that in Brazil almost 40%crop short happen and they are now looking for west african season to open...More over Chinese processors are also now looking Africa as their profit making centre. This will add competition in future...
But as we say " survival of the fittest"...sure the science wont go wrong....
appreciating your valuable comments
Regards
Sreejith k
Commodity Trade Centre
Sir,
ReplyDeleteyou r correct. but price above 1400 $ CIF is high price. commodity market up in all over world. But cashew camper to Rice, oil is on much high side. We seen the 2008 end. Euro or even usd is not stable. we don't what will happen to EURO or USD if prices of oil will grow like this.
i hope your knowledge will handy for as to understand cashew batter. Please keep posting your views.
warm regards
vinay Kr Sharma
Guinne Bissau