Hazelnut Market Update December 2021 Week 49

Unfortunately, things haven't gotten better in Turkey. On Thursday, President Recep Tayyip Erdoğan appointed a new finance minister. For traders, it's impossible to tell where the market will go.

Panic in the Market

The Turkish Lira keeps on hitting new lows against the US dollar, leading to unprecedented inflation at 21%, as reported by the government. Scientists, however, believe that inflation will be around 50%. In November alone, the Turkish Lira depreciated 40% against the Euro.

The Central Bank tried to keep the market afloat by selling US dollars but failed. This has diminished market confidence, and the government is struggling to do anything to keep it up. Of course, this spells trouble for the hazelnut market.

Usually, prices are determined by market players, which include growers, exporters, and traders, but due to this drastic fall in the Lira, the market is being strong-armed by the currency, making it impossible to determine future forecasts.

Not All is Lost Though

However, despite this, there has been good news. Turkey shipped 115,000 mt overseas, which is up to 80,000 mt exported in the same period last year.

At this rate, exports may climb to 320,000-330,000 mt this season. Although demand has certainly revived in recent weeks, suppliers are cautious regarding long-term contracts.