Hazelnuts: explosive situation

December 13, 2021 at 12:05 PM, Der AUDITOR
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ORDU. Although the Turkish lira remained relatively firm last week, it has now plummeted to a new low against the US dollar and euro. Issue is that S&P Global Ratings lowered the outlook for the lira to negative on Friday coupled with speculations on new interest rate cuts on Thursday. According to Bloomberg, the central bank is expected to cut interest rates by another 100 basis points to 14%. Not all reactions make sense in the hazelnut market.

Illogical prices

As the lira continues to plummet, chaos prevails in the hazelnut market with traders pointing out that not all prices on offer make sense. Problem is that the market is largely driven by exchange rate fluctuations, which have become unpredictable. While some suppliers are constantly adjusting their prices, others have retained the same prices for weeks, despite the depreciation of the Turkish lira and the rise in raw kernel prices. Prices have, in other words, drifted far apart with differences exceeding EUR 0.50/kg frequently being reported and it

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