Hazelnuts Market Update June 2022 Week 26

While the interest rate has been set at 14 percent, Erdogan's statements have sent the lira crashing versus the dollar and the euro. This has exacerbated Turkey's rising loss of confidence as citizens grapple with skyrocketing food costs and energy expenses.

Non-essential purchases, like hazelnuts, have been eliminated as the populace struggles to make ends meet. Domestic demand is so low that refineries have halved their production capacity. However, rising inflation, increasing oil, fuel, and food costs, as well as the conflict in Ukraine, are worldwide issues, and there is no chance that hazelnut demand will pick up very soon. After last week, in-shell exports totalled 289,645 mt, indicating that weekly shipments increased by just 4,429 mt. This suggests that there are currently no new contracts being signed.

The TMO, on the other hand, is unconvinced by the apparent lack of hazelnut demand. The state-run organization has announced the third round of sales of over 18,000 mt of in-shell hazelnuts at a price of TRY 44.00/kg, despite failing to sell all quantities in the second round of sales at TRY 41.50/kg. The market had expected such a move, but the TMO's motives are unknown. One theory is that the TMO's goal is to push up prices as high as possible before the conclusion of the season to issue a high bid price at the start of the next season.

The market is still testing the waters regarding hazelnut kernel pricing for 11-13 mm and 13-15 mm. There is a significant pricing difference, ranging from TRY 84.00 to TRY 86.00 per kilogram. Prices should finally fluctuate between TRY 86.00/kg and TRY 84.00/kg since no one wants to sell at TRY 84.00/kg and no one wants to purchase at TRY 86.00/kg. While some providers have increased their export pricing for raw kernels with a diameter of 11-13 mm, others have kept their prices lower.