The past trading week was a rather quiet one. Although there are always individual inquiries that keep the hazelnut market alive, it is not clear that there is much demand. Although the industry is requesting indications for negotiations, there is currently no buying interest. There has recently been a little activity on the Turkish domestic market, but here too the market is subdued overall. Overall, we are noticing that sellers are now becoming somewhat more active.
In terms of prices, we are seeing more of a sideways movement about raw materials. However, the export price lists are continuing to fall slightly on average. This is probably because exporters are now cutting back on margins, i.e. the competitive pressure in the industry is having an effect. However, it is still the case that the price lists of the various exporters are softening significantly.
Rumors about price adjustment by the market leader
Furthermore, there is little news. Although there were rumors that the hazelnut market leader would adjust its bid once again, this has not happened. There is also no news from Turkish Grain Board – TMO. As a result, there has been little movement in prices from this side either. The first teams are already out and about in some regions to assess the condition of the bushes. It is not yet possible to make any real predictions about the coming harvest, but exporters do not want to leave anything to chance in the coming season and want to be as well prepared as possible. Due to the emotionally charged atmosphere, an eventful spring and an active rumor mill are expected.
There were also hardly any changes on the financial market. There is a certain amount of volatility, but this is negligible in a weekly comparison.
The situation is not expected to change in the coming week. We suspect that many buyers will be watching December for a while to see whether the lack of demand will have an effect on prices. However, it is unlikely that any covering will take place until corresponding transactions have been concluded. At the current level, we hardly see any buyers willing to cover speculatively.
Bullet points
- Raw material prices are currently moving sideways.
- The correction in the export price lists is due to competition, as the foreign exchange markets are also essentially unchanged.
- There are sporadic small inquiries, otherwise buying interest remains low.
- There is more interest in information for later dates, but buyers are not yet ready to cover, as the corresponding trades are lacking and the level is too high for speculative cover.
- Neither the market leader nor the TMO have signaled any change in behavior.
- Financing costs continue to be the main issue for exporters.