Market info - Raisins Turkey
With the new cut in the key interest rate, the Turkish lira lost further in value, which is also reflected in the export prices for Turkish sultanas. Exporters are working at full speed to supply their foreign customers before the Christmas holidays. The INC expects global sultana production to increase by 3.3%.
The Turkish Central Bank (CBRT) cut the key interest rate by 100 basis points to 15% last week. As a result, the Turkish lira reached a new record low. Market players are looking nervously to the future, as further cuts are also said to be planned for next month. Since September, the key interest rate has already been cut by 400 basis points.
In view of this, some exporters have reduced their prices for sultanas.
Meanwhile, exporters are working flat out to clear their outstanding shipments for this year. They have only two weeks left to supply customers before the start of the Christmas and New Year holidays. Last week, 5,364 mt of sultanas and raisins were shipped overseas, almost 400 mt more than this time last year. In total, 68,006 mt have been exported since the beginning of this season, compared to only 67,547 mt in the same period last year.
According to the latest report by the International Nut and Dried Fruit Council (INC), Turkish sultana production in 2021/2022 reaches 290,000 mt, which would be a slight decline from tlast year, and Iran's yield is also said to have dropped by a third. Last year, lockdowns and labour shortages in the wake of the coronavirus pandemic caused a slump in sultana production in China. For the 2021/2022 season, the figures are much more optimistic and output is expected to have doubled year-on-year to 200,000 mt, thanks in part to favourable weather conditions.
California sultana production increased by 8% year-on-year to 193,000 mt. Despite this summer's low rainfall, temperatures had a positive effect on the development of the grapes, although larger quantities are said to have been processed by winegrowers this year. Overall, global sultana production is expected to reach 1.36 million mt, which would be a slight increase of 3.3% compared to the 2020/2021 season.