Bottle Of Cashew Nuts Price Rises From N6,500 to N8000 In Nigeria

[00:00:00]Let's look at what's driving cashew prices. Get a check in very quickly on the commodities space there. Favor, are you there now?

[00:00:08]>> Good afternoon, are you okay? Can you hear me?

[00:00:10]>> I can hear you loud and clear. Favor, I'm just asking very quickly. Give us an update what's driving cashew prices and what the outlook is right now.

[00:00:18]>> Okay, so you're right that the price of cashew nut, a bottle of cashew nuts, has increased by 23% to 8,900 year-to-date. And this is as a result of a number of factors. Number one is that cashew is a seasonal commodity, right?

[00:00:34]With its peak season usually spanning from the month of January up until mid-June. And we're seeing that it's beginning to go out of season, right?

[00:00:43]And this has led to an increase in the price of you know, cashew nuts. Coupled with the fact that we have high demand for cashew nuts, especially from countries abroad such as India, Vietnam, and the UAE. You know, so that has led to the strong demand for that, you know. And the second point is transportation cost, right? We've seen over the months about how, you know, fuel and diesel have increased. So transporting this commodity from states that they are majorly produced in Kogi state is the largest producer of cashew nuts to the end producers and everything. You know, this has led the increase in the price of, you know, fuel has led to an increase in the price of operational cost, right? So we are saying that oh, there is a deal being signed between the US and Iran, but you know, it still takes months for us to get back to the, you know, previous way that we were we were before irrespective of the progress in the US-Iran war. And lastly, there is insecurity, you know, largely that have discouraged farmers, you know, from farming on their farmlands, further reducing supplies. So I'll say these reasons have contributed to an increase in the price of cashew nuts. And the outlook, um like I said, you know, it's out of season. It's getting to the point where it's generally going to be out of season from especially from the month of, you know, ending of June and July. And that coupled with other factors that I mentioned earlier on, you know, will will lead to a further increase, you know, in the price of cashew nuts, especially since, um um the transportation cost, it might take a while, you know, before things get back to to normal, like I said earlier on.

[00:02:30]>> I definitely would do it. We would really like to know what the price, current price of cashew nut is in the market right now. If you just say a day, uh maybe survey from yesterday to just give us an outlook what we expect, especially if I walk into a shop and I want to buy cashew nut. I don't know if you have that off the top of your head, but thank you so much, uh Feyiwa Adekoya, analyst with FDC Financial Derivatives Company for sharing those insights.

[00:02:55]>> Thank you for having me.