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Hazelnuts: Ferrero has had enough

June 13, 2017 at 12:14 PM , Der AUDITOR
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ORDU. According to reports, Ferrero/Oltan announced that they will not be purchasing any more significant quantities this season.

This could be due to the relatively low quality of the 2016 crop, among other things. As a reaction to this news, the prices collapsed the last week. Thanks to the last price decline, other buyers are now in the comfortable situation of being able to stock up at comparatively low prices. 

Turkish hazelnut kernels

Product 

EUR/kg

Whole, 11-13 mm 

5.61

Diced, 2-4 mm 

5.50

Meal, 0-2 mm 

5.20

Hazelnut paste

5.19

DDP Germany


Nothing is impossible

The hazelnut market is split into two camps. There is general agreement with regards to the crop estimates (700,000 mt) and the carry-over stocks (50,000-100,000 mt), but these are the only things in common. There are remarkable disagreements.

A-side: The intervention purchases by the TMO have been sluggish until now, despite prices being better. Compared to last year, there still is room on the downside. Traders are selling their stocks out of fear of further losses. Ferreros' influence on the market is estimated to be much lower than in the last few years. 

B-side: Due to the unstable political situation in Turkey the announcement of additional intervention purchases could suffice drive prices up. Certain residual risk factors (weather, disease) invite both farmers and exporters to speculate. Export business is going better than expected this season, and farmers and traders may hold back their products to sell at higher prices later on.

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Hazelnut kernels natural price chart

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