The Mintec Benchmark Prices of Turkish sultanas, type 9 FOB Turkey, fell to their lowest level since December 2016, at USD 1,385/MT in mid-June. Following this, the market rebounded slightly, rising by USD 35 (+2.3% w-o-w) to USD 1,420/MT on the week of 22nd June, however, prices continue to trend close to multi-year lows.
Demand in Turkey has been slow in recent weeks. ‘Demand has been quite flat recently. Contracts are in place and buyers are waiting for when the new crop comes in’, a UK trader has said. ‘The market is quiet, there is not too much going on at the moment. Even when prices were lower a few weeks back, there was not much activity in the market’, a Dutch trader added. However, he also noted that prices are at ‘attractive’ levels, which could stimulate additional demand going forward. One European buyer confirmed that he is contracting additional volumes in line with the reasonable prices for sultanas.
On the supply side, there have been concerns over hail damage in parts of the Manisa province, Turkey, over the past couple of weeks but it seems as if the damage has been mostly localised, with a limited impact on the total production.
Most market participants expect the upcoming 2022/23 Turkish sultana crop in excess of 300,000 tonnes. ‘It is still too early in the season, but growing conditions have so far been favourable. It seems as if Turkey is in for a good crop’, a trader has said.