Nuts

Hazelnuts: blame game spells trouble

August 9, 2021 at 11:26 AM , Der AUDITOR
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ORDU. The hazelnut market is still waiting for the TMO to issue a bid and for Ferrero to jump into action. With President Erdoğan, however, facing fierce criticism over his response to the wildfires in the southern parts of Turkey things may be different this year. The present political blame game spells trouble for the market, which has certainly taken a rather surprising turn.

Market holds its breath

Turkey’s political situation does not have a direct impact on the hazelnut market. Traders are, however, keen to emphasise that the current political blame game may prompt some decisions that do not necessarily make much sense. Issue is that the wildfires have prevented President Erdoğan from announcing the TMO bid in Giresun amid fierce criticism over his handling of the situation. Anger is mounting as he failed to show up in the areas affected for days and essentials, such as firefighting planes, were simply not available. The political blame game is on with the president trying to shift responsibility to the opposition. This fragile situation may very well spell trouble for the Turkish lira and for any decisions that may directly impact the hazelnut market.

Prices take a dip

The Turkish lira came under pressure again last week and long-term planning is rendered extremely difficult. Overseas demand is still rather subdued at present as many buyers are enjoying their summer break. The TMO bid, which is now expected to be issued in mid-August, is unlikely to revive demand in the export market. Ferrero should, however, react swiftly and set a base price as soon as the TMO has issued the bid. This will set the course for the new season as exporters will then decide if they prefer to supply the market or Ferrero.

Most buyers have also purchased sufficient supplies for the fourth and first quarter. The base price will, however, be crucial for the second and third quarter. Exporters are shipping unusually large volumes of the current crop at present. Exports may even range just below 290,000 mt this season. Traders rate this as a sure sign that prices are expected to rise. The market has, however, taken a temporary dip at present. Issue is that some suppliers are clearing out their inventories to make room for the new crop.

Hazelnuts, Turkey

Size

EUR/kg

Natural, 11-13 mm 

5.50

Diced, 2-4 mm 

6.25

Meal, 0-2 mm 

5.85

Hazelnut paste

5.40

DDP Central Europe

 

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