Nuts

Hazelnuts: TMO price takes market by surprise

May 4, 2020 1:14 PM, Der AUDITOR
Play report as audio

ORDU. As the TMO has announced the next round of sales for May, the selling price is unexpectedly high. Market players reckon that hazelnut production will take a 20% dip in Turkey this year.

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.

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.

View more information

price chart, hazelnut kernels, natural, Turkey
more price charts

Attached Files

File icon
price chart hazelnut kernels natural Turkey

View related articles

Go to the News Overview
Nuts
Jan 20, 2022
SACRAMENTO. Transport problems had caused many US exporters to miss the important Christmas business. High prices had also initially deterred buyers, but have now returned to a more attractive level.
Nuts
Jan 19, 2022
SACRAMENTO. As logistics are still an issue US almond exports have slowed for the fourth consecutive month in December. Total shipments declined by 17% between August and December.
Nuts
Jan 19, 2022
HANOI/NEW DELHI. Even though prices for Indian cashews are approaching a more attractive level again, suppliers there will have a hard time keeping up with the competition from Vietnam and African growing countries. Vietnam achieved a new export record in 2021.
Nuts
Jan 12, 2022
SUCRE. After production proved disastrous in 2021/2022, hopes are high that things will improve in 2022/2023. Heavy rains may, however, be decisive. Anticipations for the new crop have also hit Europe.