The Mintec Benchmark Prices for Turkish hazelnuts (Levant quality, 11-13mm) were down by 2% in the four-week period to 3rd August, at $560/100KG for a product delivered on a CFR basis Northwest Europe. The market price has plummeted by over $130/100KG since mid-May following the sharp depreciation of the Turkish lira and weak international demand.
The International Nut and Dried Fruit Council (INC) projects the size of the upcoming 2023/24 harvest in Turkey, starting in a few days, at 810,000 tons, a decrease of 2% y-o-y. The Turkish Ministry of Agriculture and Forestry recently pegged the 2023/24 crop size at 718,000 tons, almost 92,000 tons below the INC projection.
The Turkish Grain Board (TMO) is expected to announce its 2023/24 purchasing intentions shortly. Last year, the agency committed to paying TRY 53/kg for Giresun quality, TRY 52/kg for Levant quality, and TRY 51/kg for Sivri quality hazelnuts. This was a huge increase on the 2021/22 campaign, where the TMO paid TRY 27/kg for Giresun quality hazelnuts and TRY 26.5/kg for Levant quality hazelnuts. A big increase in TMO purchasing prices is also expected for the upcoming harvest following the high inflation to which Turkish hazelnut farmers and processors have been exposed, and a rise in the minimum wage.
Moving shortly into the new campaign, the TMO still sits on an estimated 120,000 tons of hazelnuts from the current 2022/23 campaign. In June, the agency offered 23,000 tons of its hazelnuts for sale at TRY 68/kg for the Levant quality hazelnuts and TRY 65/kg for lower quality hazelnuts. Demand for the TMO-held stock has been lukewarm due to more appealing prices in the free market. Demand in Europe has also been slow.
For more information: mintecglobal.com
