Similar to the previous week, we observed an upward adjustment in prices this week as well in Turkish Hazelnut Market. The reason is good demand, especially from the market leader, but also from other exporters. Additionally, the completion of the harvest has resulted in only a limited supply of raw materials at local buying stations. Unlike the previous week, we also noticed a significant increase in processed goods. This is mainly because some exporters are now hedging their sales and increasingly demanding B-grade or broken goods from processing.

Market Dynamics and Future Outlook

Currently, we are in a situation where the origin is receiving some demand from European buyers who do not want to be oriented only in the short term due to the changing market. This demand coincides with the moment when sellers in the origin are reassessing their stocks and deciding whether to sell to the market leader or at lower prices in the free market. Although not all can sell to the market leader, we see that prices are increasingly oriented toward the market leader's bid. Since there are no established quality premiums in the free market, the higher quality batches are currently going to the market leader. The free market, on the other hand, seems to have largely accepted the current quality.

The coming weeks will be quite interesting to observe. On the one hand, high prices and uncertainties in sales forecasts lead to a somewhat pessimistic assessment of export forecasts, thus putting pressure on prices. On the other hand, the continued strong inflation combined with a stable currency results in some pressure to further adjust prices upwards. Depending on the region, large quantities of raw materials have been delivered on a commission basis, which fundamentally increases the potential for change. The decisive factor will be whether buyers are willing to accept further surcharges or whether they will significantly reduce demand.

Key Points

• The purchase bid of the market leader now significantly influences the raw material prices. The gap between the free market and the market leader’s bid is steadily decreasing.

• As a result, exporters are widely adjusting their price lists again in Turkish Hazelnut Market. The heterogeneity is now gradually decreasing.

• The quality problem of the harvest with natural kernels remains unclear in its dimension; many contradictory statements dominate the mood, so there is no clarity. However, the market seems to have accepted the situation.

• The hazelnut market leader works with quality premiums, which the free market does not recognize.

• The Turkish Lira continues to trend sideways against the Euro and the US Dollar.

Click here to reach our trading platfrom CMBroker