Last week was still characterised by little activity. Although there was an increased need for information for orientation, concrete inquiries were rare. The market is currently characterised by disagreement, on the one hand concerning offers and on the other hand concerning the assessment of the future development of commodity prices. While some assume that these high raw material prices will not be maintained long term, others believe that the end is still a long way off. However, there are also significant differences among suppliers regarding offers for prompt delivery. Some have adjusted their calculations in line with cost increases (energy, wages, transport, financing, packaging materials, profit margin). Others still seem to be working from a different basis. In any case, the order of the day is: compare!
On balance, we saw a downward correction in export prices this week. Conversely, commodity prices eased somewhat, as some calm has returned after the turbulent past weeks. On the other hand, there is little export demand, or the market lives on existing contracts.
The outcome of the next meeting of the Monetary Policy Committee of the Turkish Central Bank on January 20 and the market’s reaction to it are eagerly awaited. It will now become clear whether the lira will be punished again in the event of a possible further interest rate step or whether the guarantees issued will keep the lira at its current level. This conclusion will have a significant impact on further price policy. Stabilisation would be desirable, as another price spiral would be destructive for the market in the coming months. Exporters would do well to market this season’s large crop safely to not build up excess inventory in the long run.
It is also worth mentioning that the Commission’s Implementing Regulation (EU) 2021/2246 of December 15, 2021, announced that increased official controls are no longer justified in the future for hazelnuts and products made from them from Turkey in accordance with Implementing Regulation (EU) 2019/1793. It will, therefore, no longer be necessary to issue a CHED-D for them in the future. This represents a specific relief in processing for importers and exporters. Although this is a welcome development, it comes precisely in the season in which higher values are internally expected for the second half of the season.
In addition to the regular market activity, the rankings of the largest exporters were published again this week (see below). As in previous years, concentration within the industry is increasing. Especially the dominance of the market leader. The market sees this with growing concern.
wpDataChart with provided ID not found!Bullet points
- Little activity in the market. Sellers and buyers are still orienting themselves.
- Market continues to disagree on further development.
- Export prices weaken somewhat due to declining commodity prices.
- The Turkish lira can hold its value in the week.
- Still substantial differences in the offers of individual suppliers. Comparison is worthwhile.
- Market awaits results of the next meeting of the Monetary Policy Committee of the Central Bank on January 20 and the corresponding reaction of the market.
The following reports may be of interest to you:
Related posts:
Turkey Hazelnuts: Commodity prices are slightly on the upswing again The Commodity Board 
Turkey Hazelnuts: Has the bottom now been reached at commodity prices? 
Turkey Hazelnuts: Weather curbs optimism 
Hazelnuts Turkey: Unfavourable weather conditions continue to cause delays. 
Hazelnuts: First lots of the 2021 harvest ready for loading 
Turkey Hazelnuts: State purchase price published and the consequences 
Hazelnuts Turkey: Erdoğan under political pressure Hazelnut market not important enough 
Turkish hazelnuts: Now the switch to new crop begins