Hazelnuts: TMO price takes market by surprise
May 4, 2020 at 1:14 PM ,
Der AUDITOR
Unexpectedly high TMO price
The TMO continues to sell its stocks in May and has issued a selling price of TRY 24 per kg for a volume 20,000 metric tonnes – 17,500 metric tonnes in Levant quality and 2,500 metric tonnes in Giresun quality. Market players reckon that this will be the final round of sales for the season. Only hazelnut exporters and industrial processors are allowed to buy and have to pay a deposit of 25% of the selling price. The selling price remains valid until 31 May.
The TMO’s selling price has, however, caused some irritation as a more appropriate price of TRY 22 per kg was initially anticipated. Small farmers have already sold their supplies and cannot profit from the TMO’s high price. Some traders reckon that the TMO intends to prevent a price collapse at the start of the new season in view of an possible inflation prompted by the coronavirus crisis. The Turkish Lira remains under pressure.
Volatile market
The market is highly volatile at present. Crackers selling their stocks to buy from the TMO at cheaper rates caused a temporary decline in farmgate prices from TRY 51 per kg to TRY 49.50 per kg. The high TMO price is, however, not attractive enough for buyers to conduct speculative purchases and the current market situation is too uncertain for any forecasts concerning Q4 or later. Buyers in Europe have enough stocks at there disposal and prefer to wait and see, which turn the market will take in Turkey. Natural hazelnuts, size 11-13 mm, are currently trading at EUR 7.40 per kg.
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Hazelnuts, Turkey |
|
|
Size |
EUR/kg |
|
Natural, 11-13 mm |
7.52 |
|
Diced, 2-4 mm |
8.00 |
|
Meal, 0-2 mm |
7.10 |
|
Hazelnut paste |
6.50 |
|
DDP Germany |
|
Production estimates to be issued later than usual
Market players expect a 20% decline in production. Crop estimates will, however, only be issued towards the end of May as there are no platforms, such as the INC, for which early production estimates are required this year. The advantage, however, is that late production estimates should be more reliable since the impact of the cold temperatures witnessed over the last few weeks can be better assessed.
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