With Turkey’s decision to cut the key interest rate by 100 basis points to 15% on November 18 and President Erdogan indicating further cuts this week, TRY is still very volatile and breaking new record lows against USD (currently 1 USD @ ~ 12.2 TRY).
The Turkish companies which borrowed in USD & Euros for cheaper loan rates have difficult time servicing their foreign currency debt. There are attractive prices of natural kernels for export, ranging from around $5.3/kg to $5.8/kg delivered to Central Europe basis.
As such, recent price declines have certainly increased demand. Though some customers are hoping for further price declines, traders dismiss such notions at present, especially since crop quality is a problem.
The government agency TMO has also bought around 85k tons and is well on course of meeting its target of 100k tons.
TMO purchases at a fixed price of 26.5 TRY / KG (Levant Quality in-shell), but TMO quality criteria and quantity quotas are still applied. Therefore, free market has formed at a lower price and is fluctuating around 25.5TRY/KG for in-shell hazelnut. CCI supplies Organic or conventional, roasted, blanched or natural kernels, diced hazelnuts and hazelnut paste from BRC/IFS-certified packers. Feel free to contact us for info.