Hazelnut Market Update Week 35

The Turkish hazelnut market has a lot going on. With TMO offers leaving buyers completely unsatisfied, the profitable sales have left suppliers with unrealistic expectations. Political developments are influencing the market as well.

With farmers satisfied with growing conditions, the quantity of the crop is not threatened at all. A problem could occur with the quality if the rains in the Black Sea region delay the harvest. It can also lead to mould infestation. But experts are not concerned. With the demand still present, conditions are expected to get better.

The real issue, however, is price development. The TMO has announced the purchase offer of TRY 52/kg, corresponding with TRY 104/kg for raw kernels. Suppliers have already concluded contracts with European partners. Market players want to push commodity prices below TRY 45/kg, but there is resistance from growers. There is a rumour that the TMO and Turkish government are trying to put pressure on Ferrero to keep prices low and keep people happy. 

Of course, this has much to do with the upcoming elections, and the ruling party is keen on keeping its voters happy. The real question is whether Ferrero will go along with it. We will see what happens next.