The past trading week the Turkish hazelnut market was not dominated by TMO sales as expected but in the shadow of the devastating earthquake in south-eastern Turkey. Even though the Black Sea coast did not feel any direct effects of the quake, most people there are still thinking about the people who were affected by the disaster. Numerous relief campaigns are underway, donations are being collected and several trucks with relief supplies are on their way. In the shadow of these actions, little attention was paid to what was happening at the Hazelnut Market.
Continuously low demand
In the raw material market, however, TMO sales combined with continued low demand have led to a further decline in commodity prices. As mentioned earlier, however, this should not be seen as a trend reversal but as a temporary relief. Rumour has it that the next TMO auction will take place in March and at higher prices than before. Farmers are disgruntled at the moment and do not want to sell their stocks, so no significant relief will come from this side. It is also interesting to note the great interest in the TMO’s raw materials. For example, there were about five times as many bids on the quantity as available. However, this does not show the need, but the speculative tendency of the exporters. They probably all assume that prices in the Turkish hazelnut market will continue to rise and therefore want to build up their position. In addition, the 2021 harvest is very much in demand, as it is of very good quality.
Weak Euro exchange rate
All in all, we saw a certain minus in export price lists this week. However, this was put into perspective by the fact that the euro lost strength again against the US dollar, like the Turkish lira. Therefore, the discounts for dollar buyers were somewhat stronger.
We expect sellers to become somewhat more active in the coming week. It is important to watch the market.
bullet points
- Impact of devastating earthquake pushes hazelnut market out of focus
- Raw material prices continue to soften due to TMO sales
- Demand for TMO commodities is extremely high. The next auction will probably take place already in March, probably at higher prices
- However, buying interest remains low
- Sellers quite passive this week
- Weakness of the euro puts lower export prices into perspective
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