Hazelnut Raw Material Prices Continue to Rise

After hazelnut raw material prices closed the previous week with a significant plus, the trading week’s start was quieter. However, we again saw a continuous price rise this week. Again, it was mainly purchases by individual exporters that further consolidated the level. After the export price lists of many sellers in the previous week had not yet been adjusted to the current conditions, this week’s correction has led to the fact that we are generally seeing a significantly higher level in Europe. Especially for natural cores, the increase is clear. Here we also see the tendency that the offers are increasingly closer together again. However, there are still differences in the different origins. For example, origins such as Georgia and Azerbaijan have also adjusted prices upwards in line with Turkish origins, but they are still well below the level of Turkey.

European buyers focusing on third quarter

In Europe, the rise in hazelnut raw material prices has now been noticed by almost all buyers and has led to some pending deals being made or shocked withdrawals, as in the previous week. Since most of the big deals have already been done, most buyers are already focusing on the third quarter and are still hoping for another correction in the market.

The decisive factors are the 2023 harvest and the presidential election. The latter is scheduled to take place on 14 May, as announced by President Erdogan. Since the incumbent president cannot be sure of his re-election despite a poorly organised alliance against him, the election campaign is likely to be conducted with appropriate ferocity. Any electoral gifts, however, are unlikely to be to the delight of the buyers. In terms of fiscal policy, too, there seems to be no intention of experimenting any more. The Turkish central bank left the key interest rate untouched at 9% this month. However, this could not stop the continued weakness of the Turkish lira against the euro. However, this does not compensate for the rise in commodities by far.

Towards the end of the trading week, we did not see any further increase in hazelnut prices for the time being. Therefore, we expect the coming trading week to start rather quietly.

bullet points

• Commodity prices are up again.
• Export price lists are now adjusted to the current price level across the board.
• Buyers tend to react with rejection to the new price level. Exporters, however, remain buyers.
• Presidential election now scheduled for 14 May 2023.
• Turkish lira again tends to weaken slightly against the euro.
• Alternative origins adjust their price lists to Turkey’s level.

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