Nuts

Hazelnuts: TMO raises the stakes

June 8, 2022 at 10:51 AM, Der AUDITOR
Play report as audio

ORDU. Although Turkey’s inflation soared to a 24-year high of 73.5% in May, the central bank is optimistic that the tide will turn. President Recep Tayyip Erdoğan also promised more interest rate cuts in a speech he gave on Monday. Prospects are, however, far from encouraging for hazelnuts and traders are speculating on how successful the TMO will be in the third round of sales.

Refiners cut capacities

Despite the central bank leaving the key interest rate untouched at 14% in the last five meetings Erdoğan’s comments have sent the lira tumbling against the US dollar and the euro. This has added to the growing lack of confidence in Turkey as people are left to scramble with soaring food prices and high energy bills.

As the population is having trouble making ends meet, spending has been cut for non-essential goods such as hazelnuts. Domestic demand is, in fact, so low that refining facilities have cut their capacities by half. Rising inflation, soaring energy, fuel and food prices are coupled with the war in Ukraine are, however, a global problem and there is no possibility that overseas demand for hazelnuts will pick up anytime soon. Inshell exports reached 289,645 mt at the end of last week meaning that weekly exports only climbed by 4,429 mt. This shows that no new contracts are being made at present.

TMO raises selling price

The TMO, however, remains unimpressed by the evident lack of demand for hazelnuts. Although the state-run organisation failed to sell all volumes in the second round of sales at a price of TRY 41.50/kg, it has now declared the third round of sales over 18,000 mt of inshell hazelnuts at a price of TRY 44.00/kg. The market had indeed anticipated such a move yet the TMO’s motifs remain unclear, and speculation is that the TMO’s intention is to drive up prices as far as possible before the end of the season to issue a high bid price at the start of the new season.

At present the market is still testing the waters regarding the prices for 11-13 mm and 13-15 mm hazelnut kernels. A wide gap exists with prices ranging at TRY 84.00-86.00/kg. Since no one wants to sell at TRY 84.00/kg and no one wants to buy at TRY 86.00/kg prices should eventually range at TRY 86.00/kg. Although some suppliers have raised their export prices for natural kernels size 11-13 mm, others have retained cheaper offers.

Hazelnuts, Turkey

Size, crop 2021

EUR/kg

USD/kg

Natural, 11-13 mm

5.10

5.45

Natural, 13-15 mm

5.35

5.72

Organic, natural, 11-13 mm

5.70

6.09

Organic, natural, 13-15 mm

5.75

6.14

Diced, 2-4 mm

5.40

5.77

Meal

5.25

5.61

Paste

4.95

5.29

Organic, paste

5.35

5.72

DDP Central Europe

 

View more
price chart, hazelnut kernels, natural, Turkey
price charts for edible nuts, dried fruit, oilseeds and more

Attached Files

File icon
price chart hazelnut kernels natural Turkey

View related articles

Go to the News Overview
Nuts
Dec 1, 2022
CANBERRA/MADRID. Australia's almond exports are breaking one monthly record after another. Thanks to this year's good crop, prices can keep up in the international market and convince buyers in one country in particular.
Nuts
Dec 1, 2022
ORDU. Speculations are running wild as to why the raw material prices for hazelnuts have soared in Turkey and in how far the legal action against Ferrero is responsible for this. Traders also disagree as to how much the TMO has really purchased.
Nuts
Nov 29, 2022
HANOI. Rising demand for healthy snacks may be driving the popularity of cashew nuts in Europe and prompted a steady rise in imports in 2017-2021, but the situation has changed this year as inflation is up and supply chains are disrupted. Exports from Vietnam have certainly taken a hit this year.
Nuts
Nov 28, 2022
NEW DELHI. Although market prices are already well above the minimum support price, many farmers are holding back their goods in the hope of further increases. This does not necessarily meet with approval from buyers.